Summary
- Pfizer acquires private biotech Therachon to gain a clinical product, known as TA-46, to treat patients with Achondroplasia.
- Pfizer paid an upfront payment of $370 million to acquire Therachon, with the remaining $470 million to be given as milestones are met.
- Before the transaction closes, Therachon is going to spin out its GLP-2 analog Apraglutide into a separate company which Pfizer will hold an investment on with its venture capital arm.
- Two competitors who are also developing a treatment for Achondroplasia are BioMarin and Ascendis pharma.
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Pfizer (PFE) acquired a private biotech by the name of Therachon. The reason for doing so is to add several rare disease drugs into its pipeline. I believe that this is a good strategy. Especially, when you consider that the newly acquired biotech has several other rare disease indications it is working on. I tend to favor more those companies that develop drugs for rare diseases. First, they target an unmet medical need. Secondly, because, most of the times, there aren't too many competitors that exist in a certain space.
