Array BioPharma News: ARRY Stock Skyrockets on Pfizer Deal

PFE is acquiring ARRY

Array BioPharma news for Monday concerning a deal with Pfizer (NYSE:PFE) has ARRY stock soaring.

Array BioPharma News: ARRY Stock Skyrockets on Pfizer Deal
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Array BioPharma (NASDAQ:ARRY) and Pfizer have reached an agreement that will have the former being acquired by the latter. The deal has PFE valuing ARRY at $11.40 billion. Breaking this down, the offer stands at $48 per share for ARRY stock.

The offer of $48 per share for ARRY stock is a pretty premium over its closing price of $29.59 from Friday. This has the offer from Pfizer sitting at roughly 62% above the stock’s closing price on Friday.

The recent Array BioPharma news will have the company joining Pfizer through a subsidiary. This subsidiary will make a cash tender offer to purchase all outstanding shares of ARRY stock. Once the deal is complete, a second-step merger will be used to require the remaining shares.

Pfizer already outlines how it expects the deal to dilute its earnings per share over the next few years. This includes dropping earnings per share between 4 cents and 5 cents in 2019. It is expecting the same dilution in 2020. When 2021 rolls around, the company is expecting it to be neutral. Finally, it says it expects the deal to be accretive to its earnings per share starting in 2022.

Array BioPharma news will require the two companies to complete closing conditions before the deal can finish. This includes approval from regulators, as well as obtaining a majority of shares in the tender offer. If all goes well, the two companies are expecting the deal to close in the second half of 2019.

ARRY stock was up 55% and PFE stock was down slightly as of noon Monday.

As of this writing, William White did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, https://investorplace.com/2019/06/array-biopharma-news-boosts-arry-stock/.

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