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Global Blood (GBT) to be Acquired by Pfizer, Misses on Earnings

Zacks Equity Research
·4 min read

Global Blood Therapeutics, Inc. GBT announced that it has entered into a definitive agreement with pharma giant Pfizer Inc. PFE, wherein the latter will acquire GBT for approximately $5.4 billion.

Owing to the proposed acquisition, GBT decided not to hold its scheduled call to discuss second quarter 2022 results.

Per the agreement, Pfizer will acquire all of Global Blood’s outstanding shares for $68.50 per share in cash, for a total value of approximately $5.4 billion, including debt and net of cash acquired. The transaction is subject to customary closing conditions.

GBT’s sole marketed drug, Oxbryta (voxelotor), is approved in the United States for the treatment of sickle cell disease (“SCD”), a chronic, inherited blood disorder that affects hemoglobin levels. The drug is approved by the FDA as an oral, once-daily treatment for SCD in patients aged 12 years or above.

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Oxbryta is also approved in the European Union and several other countries.

In December 2021, the FDA granted accelerated approval to the supplemental new drug application seeking approval for Oxbryta to treat SCD in children aged four to less than 12 years.

Back then, the regulatory body also approved a new drug application for Oxbryta tablets for oral suspension — a new dispersible, once-daily tablet dosage for patients aged four to less than 12 years and for older patients who have difficulty swallowing whole tablets.

Global Blood is also developing its next-generation sickle hemoglobin (HbS) polymerization inhibitor, GBT601, in mid-stage studies for treating patients with SCD.

The above acquisition is likely to boost Pfizer’s strong portfolio of drug candidates for various diseases and enhance the company’s presence in rare hematology. The boards of Directors of both GBT and PFE have approved the transaction.

Shares of Global Blood have surged 127.6% in the year so far against the industry’s decline of 18%.

Zacks Investment Research
Zacks Investment Research


Image Source: Zacks Investment Research

GBT’s Second Quarter Results

Global Blood incurred a loss of $1.26 per share in second-quarter 2022, wider than the Zacks Consensus Estimate of a loss of $1.19. In the year-ago quarter, the company had reported a loss of $1.12 per share.

The company’s revenues of $71.5 million, comprising sales of solely marketed Oxbryta, beat the Zacks Consensus Estimate of $64 million. Global Blood had generated $47.6 million in product sales in the year-ago quarter. Oxbryta sales increased 29.5% sequentially.

Research and development expenses in the reported quarter were $64.8 million, up from $51.7 million in the year-ago quarter.

Selling, general and administrative expenses were $81.1 million in the reported quarter, up from $61.1 million in the year-ago quarter.

Global Blood Therapeutics, Inc. Price, Consensus and EPS Surprise

Global Blood Therapeutics, Inc. Price, Consensus and EPS Surprise
Global Blood Therapeutics, Inc. Price, Consensus and EPS Surprise

Global Blood Therapeutics, Inc. price-consensus-eps-surprise-chart | Global Blood Therapeutics, Inc. Quote

Zacks Rank & Stocks to Consider

Global Blood currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector include Bio-Techne Corporation TECH and Precision BioSciences, Inc. DTIL, both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Bio-Techne’s earnings estimates have been revised 0.2% upward for 2022 and 0.8% upward for 2023 in the past 60 days.

Earnings of Bio-Techne have surpassed estimates in three of the trailing four quarters and missed on the remaining occasion. TECH delivered an earnings surprise of 3.30%, on average.

Precision BioSciences’ loss per share estimates narrowed 5.7% for 2022 and 16.2% for 2023 in the past 60 days.

Earnings of Precision BioSciences have surpassed estimates in each of the trailing four quarters. DTIL delivered an earnings surprise of 76.15%, on average.


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