) signed a deal to acquire InnoPharma, Inc., a company that
specializes in the development of hard-to-make, differentiated,
sterile injectables. The acquisition, which could result in Pfizer
shelling out up to $360 million, is scheduled to close in the third
Pfizer will make an upfront payment of $225 million and could
end up paying up to $135 million on the achievement of certain
milestones. With this acquisition, the company will gain 10
approved generic products plus a pipeline of more than 30
injectable and ophthalmic products. These include products for
areas like cancer and central nervous disorders. Once the
acquisition is completed, Pfizer's sterile injectables portfolio
will increase to 73 products.
Pfizer is not the only company to announce an acquisition to
boost its injectable business. Late last year,
) boosted its injectables segment through the acquisition of the
Agila injectables businesses from Strides Arcolab Limited in a deal
worth up to $1.75 billion.
While the InnoPharma acquisition will strengthen Pfizer's
injectables segment, the company needs to boost its pipeline and
bring new products to market to drive growth. With this in mind,
the company had launched a proposal to acquire UK based
). The acquisition, had it gone through, would have boosted
Pfizer's pipeline specifically for immuno-oncology drugs, and would
have resulted in a more efficient tax structure. However,
AstraZeneca was not game and Pfizer subsequently abandoned its
plans to acquire AstraZeneca.
Pfizer is a Zacks Rank #2 (Buy) stock. We expect the company to
continue pursuing bolt-on acquisitions and in-licensing deals to
boost its portfolio. Some equally well-ranked stocks in the pharma
sector include AstraZeneca and
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