Pfizer Inc. (NYSE: PFE) made waves early on Tuesday after the announcement of its newest licensing deal. Shire PLC (NASDAQ: SHPG) announced it has agreed to license global rights to all indications for PF-00547659 from Pfizer.

The closing of the transaction is subject to Hart-Scott-Rodino Act approval. Also the terms of the deal were not disclosed to the public.

PF-00547659 is an investigational biologic being evaluated for the treatment of moderate-to-severe inflammatory bowel disease (IBD). PF-00547659 has been evaluated in more than 700 patients in Phase 1 and 2 trials, and Phase 3 trials are expected to begin after consultation with global health authorities.

Treatment of IBD focuses on reducing inflammation and associated symptoms through diet and lifestyle changes, pharmacologic therapy, other treatments or surgery. The prevalence of IBD is estimated to be more than 3.5 million people in the United States, the European Union and Japan.

Howard Mayer, head of Clinical Development, Shire, commented:

This licensing transaction fits with Shire’s commitment to advancing research and development in select specialty areas, including areas of unmet patient need for gastrointestinal conditions such as IBD. We look forward to continuing the development of PF-00547659, a biologic that will benefit from our experience in IBD and across the gastrointestinal space.

Shares of Pfizer closed Monday down 1.6% at $34.74, with a consensus analyst price target of $38.67 and a 52-week trading range of $28.25 to $36.46. Following the announcement, the stock was down 0.5% at $34.56 in early trading indications Tuesday.

Shire Shares closed Monday at $173.59, with a consensus analyst price target of $242.71 and a 52-week trading range of $147.60 to $270.63. In early trading indications, the stock was down 1% at $171.90.

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