Pfizer to acquire Coley Pharmaceutical for $164 million

19 Nov 2007

Mumbai: Pfizer Inc, the world''s biggest drugmaker, has agreed to acquire immunology specialist Coley Pharmaceutical Group Inc for $164 million.

Pfizer said the acquisition of Coley, a developer of vaccine technology and drugs to treat cancer, asthma and other disorders, will extend its presence in the fast-growing market for vaccines and boost its portfolio of experimental drugs to treat a range of diseases. 

Pfizer will make a cash offer of $8.00 a share for all the outstanding common stock of Coley - a 167 per cent premium over Coley''s closing price of $3.00 a share on Thursday on Nasdaq.

Wellesley, Mass-based Coley is working on a new class of drug candidates called TLR Therapeutics which either stimulate or block immune system receptors known as Toll-like receptors (TLR), which direct the immune system to fight disease.

Coley has also been developing a vaccine booster called VaxImmune, currently in Phase III trials, with several pharmaceutical partners, including GlaxoSmithKline plc

About 27 per cent of Coley shareholders have entered into agreements to tender their shares, the companies said. The acquisition is expected to close in 2008.