Not sure why they would not have purchased the ADHD king SHPG instead it's not like they couldn't afford it. Oh well, their loss.
PS: Earnings are released tomorrow. We sure could use a solid report to get some momentum back .
Pfizer Inc. ( Pfizer Inc.) on Monday said it plans to acquire the developer of a drug for attention-deficit/hyperactivity disorder in a deal potentially valued at up to $700 million.
The deal gives Pfizer an entry into an ADHD treatment market in which Shire PLC ( Shire PLC) and Johnson & Johnson ( Johnson & Johnson) have had success with branded drugs but also face competition from low-priced generics. The deal is part of a strategy to expand Pfizer's established-products unit partly by selling new, branded formulations of older drugs.
Pfizer, like many of its rivals, has been aiming to build up its product pipeline amid an industry-wide wave of patent expirations. The company has seen lower sales since its cholesterol fighter Lipitor lost U.S. market exclusivity late last year.
Pfizer said it is exercising an option to acquire NextWave Pharmaceuticals, a privately held firm and developer of a new liquid ADHD drug called Quillivant XR. The drug was approved by the U.S. Food and Drug Administration in September and is expected to be available in pharmacies in January.
Pfizer had previously entered into an option and merger agreement with NextWave during the second quarter and made an option payment of $20 million.
Now Pfizer is exercising the option to acquire NextWave and will make a payment of $255 million to NextWave shareholders at the close of the deal. NextWave shareholders are eligible to receive additional payments of up to $425 million if certain sales milestones are met.