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Following Pfizer M&A rumours, the price of Global Blood Therapeutics increases (Updated)

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Shares of Global Blood Therapeutics are soaring once more on news that Pfizer is the unidentified buyer for the business. Following news that the world’s largest pharmaceutical corporation could spend $5 billion to acquire the sickle cell disease-focused startup, the stock has soared more than 38 percent to $66.61 per share.

Global Blood Therapeutics

Pfizer is attempting to acquire the Bay Area-based business quickly, as first reported by The Wall Street Journal. The Journal suggested that there might, nonetheless, be further suitors in the running.

Pfizer wants to acquire the business and its flagship drug, Oxbryta (voxelotor), in order to expand its own pipeline and portfolio. Pfizer’s haematological research focuses on haemophilia and sickle cell disease. The business is working on an E-Selectin antagonist for sickle cell disease.

Following earlier rumours that the company and its sickle cell disease treatments may be up for acquisition, Pfizer has been named as a potential bidder of GBT. This information, which was initially published by Bloomberg, caused the company’s stock to increase by more than 40% on Thursday.

According to Bloomberg, “several large pharmaceutical corporations” have started to show interest in Bay Area-based GBT. Bloomberg cited unnamed “people familiar with the subject.” Despite the fact that the conversations are still in their early stages, the sources informed Bloomberg that GBT is consulting with advisors to gauge any prospective interest. It remains to be seen if that will lead to any M&A activity.

When BioSpace contacted the business for feedback, they didn’t answer.

The stock rose from its starting price of $43.71 to $47.99 on Thursday as a result of the news encouraging investors.

According to the study, analysts estimated the company’s valuation to be between $4.5 billion and $5.5 billion. The U.S. Food and Drug Administration authorised Oxbryta (voxelotor) for adults and children over 12 with sickle cell disease in 2019. It is the company’s flagship product. Oxbryta was approved in 2021 to treat sickle cell disease in patients four to under 12 years old. By directly inhibiting sickle haemoglobin polymerization, the underlying cause of sickling and red blood cell death in SCD, Oxbryta became the first FDA-approved medication for kids with SCD.

Oxbryta produced $194.7 million in revenue in 2021. After the medicine for sickle cell illness received approval on a global scale, that sum is expected to rise.

In July, the Medicines and Healthcare products Regulatory Agency in the United Kingdom approved Oxbryta for use in treating sickle cell disease in adults and children over the age of 12 as a monotherapy or in combination with hydroxycarbamide (hydroxyurea). With its approval, a drug that prevents sickle haemoglobin polymerization became available for the first time in Great Britain.

Following Oxbryta’s approval for use in Europe by the European Commission, that approval was given.

There are other sickle cell medications in GBT’s pipeline besides Oxbryta. Inclacumab and GBT021601, two investigational medications, were given orphan drug and rare paediatric disease designations by the business in June. A new P-selectin inhibitor called inclacumab is presently being studied in Phase III trials to determine whether it can help sickle cell disease patients have fewer vaso-occlusive crises (VOCs) and avoid hospital readmissions as a result of VOCs. In the Phase II section of a Phase II/III study, the next-generation sickle haemoglobin polymerization inhibitor GBT601 is being evaluated.

Kim Smith-Whitley, executive vice president and head of research and development at GBT, stated that GBT601 has the potential to be a best-in-class treatment for sickle cell patients when the mid-stage section of the trial began in June.

She stated in a statement that it “has the potential to specifically improve on the clinical results established with Oxbryta at a lower daily dose.”

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