Pfizer to buy Trillium for $2.3bn

November 2021 | DEALFRONT | MERGERS & ACQUISITIONS

Financier Worldwide Magazine

November 2021 Issue

In a $2.3bn deal designed to accelerate the development of innovative therapies for the treatment of cancer, US multinational pharmaceutical and biotechnology company Pfizer Inc. is to acquire clinical stage immuno-oncology company Trillium Therapeutics Inc.

Under the terms of the definitive agreement, Pfizer will acquire all outstanding shares of Trillium not already owned by Pfizer for $18.50 per share, in cash.

Trillium’s portfolio includes biologics that are designed to enhance the ability of patients’ innate immune system to detect and destroy cancer cells. Its two lead molecules, TTI-622 and TTI-621, block the signal-regulatory protein (SIRP)–CD47 axis, which is emerging as a key immune checkpoint in haematological malignancies – cancers that affect the blood, bone marrow and lymph nodes.

The haematological malignancy classification includes various types of leukaemia, multiple myeloma and lymphoma. In 2020, more than 1 million people worldwide were diagnosed with a blood cancer, representing almost 6 percent of all cancer diagnoses globally, with more than 700,000 people worldwide dying from a form of blood cancer.

“This transaction reinforces our commitment to pursue scientific breakthroughs with the addition of potentially best-in-class molecules to our innovative pipeline,” said Andy Schmeltz, global president and general manager at Pfizer Oncology. “The proposed acquisition of Trillium builds on our strong track record of leadership in oncology, enhancing our hematology portfolio as we strive to improve outcomes for people living with blood cancers around the globe.”

Committed to advancing medicines to make a meaningful difference in the lives of people living with cancer, Pfizer Oncology has a portfolio of 24 approved innovative cancer medicines and biosimilars across more than 30 indications, including breast, genitourinary, colorectal, blood and lung cancers, as well as melanoma.

“Our deep experience in understanding the science of blood cancers, along with the diverse knowledge base we have developed across our growing hematology portfolio of eight approved and investigational therapies, provide us with a foundation to advance these important potential medicines to patients who need them,” added Mr Schmeltz.

Furthermore, in September 2020, Pfizer established its ‘Pfizer Breakthrough Growth Initiative’, the goal of which is to provide funding for scientific research as well as access to Pfizer’s experts to ensure the continuity of clinical programmes that could be of potential strategic interest for Pfizer. Pfizer has committed to providing up to $500m in total funding to the initiative.

“Pfizer’s acquisition of Trillium reflects Trillium’s potentially best in class SIRP–CD47 status and contribution to immuno-oncology,” said Dr Jan Skvarka, chief executive of Trillium. “Trillium has the only known SIRP–CD47 targeting molecules with clinically meaningful monotherapy responses as well as a strong basis for combination therapies, which is supported by preclinical evidence with a diverse set of therapeutic agents.”

Completion of the acquisition is subject to court and regulatory approval, as well as certain other closing conditions customary for transactions of this nature.

Pfizer’s financial advisers for the transaction are BofA Securities, Inc., with Ropes & Gray LLP and Norton Rose Fulbright Canada LLP acting as legal advisers. Centerview Partners LLC served as Trillium’s financial adviser, while Goodwin Procter LLP and Baker McKenzie LLP (Canada) served as its legal advisers.

Dr Skvarka concluded: “With Pfizer’s global reach and deep capabilities, we believe our programmes will advance more quickly to the patients we have always aspired to serve.”

Fraser Tennant