Shares of Trillium Therapeutics (TSX: TRIL) (NASDAQ:TRIL) are surging after the Toronto-based immuno-oncology company agreed to be acquired by American pharmaceutical giant Pfizer (NYSE:PFE) for $2.26 billion U.S.
The all-stock deal will see Pfizer purchase Trillium Therapeutics for $18.50 U.S. per share, which values the company at $2.26 billion U.S. The deal represents a 118% premium to Trillium’s 60-day weighted average price, according to a news release announcing the deal.
Trillium’s NASDAQ-listed shares surged 190% in trading on Monday (August 23), hitting $17.70 U.S. per share.
Pfizer expects to benefit from Trillium’s blood cancer therapies that target a signal used by cancer cells to evade the immune system. Forty Seven Inc., which is also developing drugs that target the same antibodies, was bought by Gilead Sciences for $4.9 billion U.S. in 2020.
More than one million people worldwide were diagnosed with blood cancer in 2020, representing almost 6% of all cancer diagnoses. More than 700,000 people worldwide died from some form of blood cancer last year.
Pfizer had bought nearly 2.3 million shares of Trillium stock last September for an average price of $10.88 U.S. each, representing a $25 million U.S. investment.