Shares of Anacor Pharmaceuticals (ANAC) jumped more than 50% in premarket trading Monday off news that Pfizer (PFE) made a $5.2 billion takeover offer for the Palo Alto, Calif.-based drugmaker.
Pfizer's bid values Anacor at $99.25 a share -- or 55% higher than the stock's closing trading levels Friday -- and premarket trading suggests about $1.5 billion will be added to Anacor's roughly $3 billion market cap.
Both companies' boards of directors unanimously approved the transaction, according to a Monday release, and Pfizer cited an anti-inflammatory drug, crisaborole, as Anacor's "flagship asset."
"Pfizer recognizes it needs new drugs," Real Money's Jim Cramer said in a Monday email. "It failed on Allergan and now it needs to do something, anything, and this is what this deal is about."
Anacor shares are down 43% year to date, prior to the announcement of Pfizer's bid, which has sharply pared down the drugmaker's market cap, increasingly putting the firm in a discounted position for a takeover bid. Meanwhile, Pfizer shares are up 3% so far in 2016, and remain unchanged in premarket trading Monday.
"We believe the acquisition of Anacor represents an attractive opportunity to address a significant unmet medical need for a large patient population with mild-to-moderate atopic dermatitis, which currently has few safe topical treatments available," Albert Bourla, Pfizer's president of global vaccines, oncology, and consumer products, said in a statement.