Pfizer to Buy NextWave Pharmaceuticals

Photo of Trey Thoelcke
By Trey Thoelcke Published
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.

Pfizer Inc. (NYSE: PFE) said today that it will acquire privately held NextWave Pharmaceuticals. NextWave is a specialty pharmaceutical company that focuses on the development and commercialization of products for the treatment of attention deficit/hyperactivity disorder (ADHD) and related central nervous system disorders.

The agreement includes recently FDA approved Quillivant XR, which is the first once-daily liquid ADHD treatment in the United States.

Pfizer previously entered into an option and merger agreement with NextWave and made an option payment of $20 million in the second quarter. Pfizer now is exercising its option to acquire NextWave. Under the terms of the agreement, Pfizer will make a payment to of $255 million to NextWave shareholders when the transaction closes. NextWave shareholders are eligible to receive additional payments of up to $425 million, based on certain sales milestones.

The transaction is expected to close during the fourth-quarter of 2012, subject to regulatory approval.

Analysts expect Pfizer to report lower per-share earnings and revenues when it shares it third-quarter results later this month.

Shares of Pfizer are down fractionally in premarket trading to $25.71. The 52-week range is 18.15 to $26.09 and the mean price target is $27.67.

Photo of Trey Thoelcke
About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

Featured Reads

Our top personal finance-related articles today. Your wallet will thank you later.

Continue Reading

Top Gaining Stocks

CBOE Vol: 1,568,143
PSKY Vol: 12,285,993
STX Vol: 7,378,346
ORCL Vol: 26,317,675
DDOG Vol: 6,247,779

Top Losing Stocks

LKQ
LKQ Vol: 4,367,433
CLX Vol: 13,260,523
SYK Vol: 4,519,455
MHK Vol: 1,859,865
AMGN Vol: 3,818,618