Pfizer is buying the eczema treatment developer just one month after it scrapped its $160 billion merger deal with Allergan. Fred Katayama reports.
Just one month after scrapping its huge merger with Allergan, Pfizer went shopping. It's buying Anacor Pharmaceuticals. It's paying $5.2 billion in cash for the eczema drug maker. Pfizer is betting that that gel treatment, Crisaborole, will become a blockbuster drug with $2 billion in sales after it gets government approval. Anacor also holds the rights to the toenail fungus drug sold by Sandoz, Kerydin. Pfizer sees the purchase as a way to boost its inflammation and immunology drugs business that includes Enbrel. Analysts have anticipated Pfizer would pursue deals ever since it abandoned its $160 billion planned marriage with Allergan. It walked away from that agreement after the Treasury implemented new rules to curb inversion deals like Pfizer's. Such deals aim to cut taxes by moving the headquarters overseas through a merger deal. Anacor's stock catapulted higher in early trading. Although Pfizer is paying a huge premium, Anacor's shares are down 43 percent this year.