Pfizer Inc. (NYSE: PFE) announced Monday that it has reached a definitive agreement to acquire Anacor Pharmaceuticals Inc. (NASDAQ: ANAC) for $99.25 a share in cash. Net of Anacor’s cash and assuming conversion of Anacor’s outstanding convertible notes, the deal is valued at $5.2 billion.

Anacor’s “flagship asset,” according to the announcement, is its crisaborole treatment for eczema, which was accepted by the U.S. Food and Drug Administration (FDA) for review in a New Drug Application in March. The target date for completion of the review is January 7, 2017. Pfizer said it believes that peak sales of the drug, if approved, could reach or exceed $2 billion a year.

Albert Bourla, group president of Pfizer’s global innovative pharma and global vaccines group, said:

Anacor will be a strong fit with Pfizer’s innovative business, further supporting our strategic focus on Inflammation and Immunology, and is expected to enhance near-term revenue growth for the innovative business. Our dedicated Inflammation and Immunology group has strong existing in-market franchises with Enbrel and Xeljanz, as well as a robust mid-stage pipeline, and this acquisition has the potential to add a near-term U.S. product launch. We believe we are well positioned to maximize crisaborole’s commercial potential through our strong relationships with pediatricians and primary care physicians.

Anacor also holds the rights to Kerydin, a topical treatment for toenail fungus, that is distributed by Sandoz. Kerydin competes with Jublia from Valeant Pharmaceuticals International Inc. (NYSE: VRX). According to the People’s Pharmacy website, both treatments sell for more than $500 for a four-milliliter bottle.

Pfizer said it will finance the transaction through existing cash and does not expect the acquisition to have any effect on fiscal 2016 guidance. The company expects the acquisition to close in the third calendar quarter of this year and to be “slightly dilutive” to adjusted diluted earnings per share in 2016, turning positive in 2018 and “increasing thereafter.”

Unlike the failed $160 billion merger with Allergan PLC (NYSE: AGN), which is located in Ireland and was torpedoed when the Obama administration changed the rules on tax inversions, the deal for U.S.-based Anacor is unlikely to run into regulatory headwinds.

Anacor’s shares closed at $61.44 on Friday and traded up about 54% in Monday’s premarket session at $98.55. The stock’s 52-week range is $52.00 to $156.93.

Pfizer stock was inactive early Monday. Shares closed at $33.19 on Friday, in a 52-week range of $28.25 to $36.46.

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