Pfizer stock rose Monday on its $2.26 billion plan to acquire Trillium Therapeutics (TRIL) in a cancer mashup that also helped TRIL stock to skyrocket.
The deal adds to Pfizer‘s (PFE) pipeline of blood cancer treatments. Trillium is testing a pair of drugs that block CD47. That protein coats the surface of many cells. It tells immune cells called macrophages not to eat those cells. But cancer cells can use it to avoid detection and destruction. Trillium is testing its drugs on types of myeloma and lymphoma.
“With Pfizer’s global reach and deep capabilities, we believe our programs will advance more quickly to the patients we’ve always aspired to serve,” Trillium Chief Executive Jan Skvarka said in a written statement. “We believe this is a good outcome for patients and our shareholders.”
On today’s stock market, TRIL stock catapulted 188.8% to 17.59. Pfizer stock also rose 2.5% to 49.93.
Pfizer Stock: A Previous Investment
The company has already invested $25 million in Trillium through the Pfizer Breakthrough Growth Initiative. The initiative aims to provide up to $500 million in funding for cutting-edge science. Under the terms of Monday’s deal, Pfizer will pay $18.50 per share of TRIL stock it doesn’t already own.
Trillium’s leading drugs have shown potential as solo therapies in various lymphomas.
The company evaluated 30 patients from a Phase 1 study of its drug, TTI-622, in heavily pretreated cancer patients. Two had complete responses — meaning there were no detectable signs of cancer. Both are still responding to treatment, including one who has remained in remission for more than two years.
But that news didn’t spark TRIL stock on July 26. Shares have a weak IBD Digital Composite Rating of 10. This puts shares in the bottom 10% of all stocks in terms of fundamental and technical measures. Pfizer stock, on the other hand, has a perfect CR of 99.
TRIL Stock Nabs Hefty Premium
Pfizer notes more than 1 million people were diagnosed with a blood cancer in 2020. That represents almost 6% of all cancer diagnoses globally. In total, the company says it has eight blood cancer drugs either approved or in testing. The deal could help further Pfizer stock’s strong 2021 rise.
The acquisition — which values TRIL stock at a 66% premium to its 60-day weighted average price — is still subject to approval by shareholders.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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