Pfizer to Buy NextWave Pharmaceuticals
Pfizer Inc. (NYSE: PFE) said today that it will acquire privately held NextWave Pharmaceuticals. NextWave is a specialty pharmaceutical company that focuses on the development and commercialization of products for the treatment of attention deficit/hyperactivity disorder (ADHD) and related central nervous system disorders.
The agreement includes recently FDA approved Quillivant XR, which is the first once-daily liquid ADHD treatment in the United States.
Pfizer previously entered into an option and merger agreement with NextWave and made an option payment of $20 million in the second quarter. Pfizer now is exercising its option to acquire NextWave. Under the terms of the agreement, Pfizer will make a payment to of $255 million to NextWave shareholders when the transaction closes. NextWave shareholders are eligible to receive additional payments of up to $425 million, based on certain sales milestones.
The transaction is expected to close during the fourth-quarter of 2012, subject to regulatory approval.
Analysts expect Pfizer to report lower per-share earnings and revenues when it shares it third-quarter results later this month.
Shares of Pfizer are down fractionally in premarket trading to $25.71. The 52-week range is 18.15 to $26.09 and the mean price target is $27.67.