Is Pfizer
Both Amicus and FoldRx study protein misfolding, which can cause diseases. In FoldRx's case, Pfizer is getting tafamidis meglumine, a drug that treats a rare disease called TTR amyloid polyneuropathy (ATTR-PN). FoldRx has already submitted the drug for approval in Europe and is discussing with the Food and Drug Administration what additional studies, if any, need to be done to gain U.S. approval.
The companies didn't give terms for the deal, but did say it was structured based on milestones. Both of those are positives for Pfizer's investors since it means the deal isn't material to Pfizer's financials, and it's not on the hook for as much if the drug approval doesn't pan out.
If approved, the lead drug will be a nice addition, but Pfizer is likely pursuing FoldRx's pipeline and expertise in rare diseases. Drugs that treat orphan diseases usually fetch high prices, which makes up for the smaller potential patient base -- ATTR-PN affects "at least 8,000 patients worldwide." Not very many.
Pfizer seems increasingly enamored of drugs that treat rare diseases. It recently licensed Protalix BioTherapeutics'
Given the increased interest, might Pfizer be interested in outbidding sanofi-aventis
Either way, it's clear there will be another acquisition. Pfizer isn't going to fold anytime soon.
Matt Koppenheffer hates this stock, but he isn't willing to short it either.
