Trillium Therapeutics soars 200% after Pfizer inks deal to buy cancer-drug company for $2.3 billion

• Shares of Trillium Therapeutics soared as much as 200% on Monday after Pfizer agreed to buy the cancer-drug company for $2.3 billion.
• The acquisition will add potential oncology therapeutics targeting blood cancers.
• Pfizer had originally invested $25 million in Trillium in September of last year.
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Pfizer and Trillium Therapeutics have agreed to merge, sending the small-cap biotechnology company up as much as 200% on Monday.

Pfizer will acquire the company for $18.50 per share in cash, making the deal worth $2.26 billion. Shares of Trillium closed at $6.09 on Friday.

The deal will bolster Pfizer's oncology and hematology portfolio, as it works on potential therapeutics to treat blood cancers. More than 1 million people were diagnosed with a blood cancer in 2020, representing nearly 6% of all cancer diagnoses globally.

"Our deep experience in understanding the science of blood cancers, along with the diverse knowledge base we have developed across our growing hematology portfolio of eight approved and investigational therapies, provide us with a foundation to advance these important potential medicines to patients who need them," Pfizer's Andy Schmeltz said.

Pfizer had originally invested $25 million in Trillium in September of last year, as part of its breakthrough growth initiative. The pharma giant said the acquisition of Trillium's drug pipeline could enhance growth in 2026 to 2030, and beyond.

Trillium is a pre-clinical drug development company, with 9 trials either enrolling patients or entering phase I/II trials. The proposed merger was approved by the boards of both company.

Shares of Pfizer traded up as much as 3% on Monday, but that could have more to do with expected FDA approval of its COVID-19 vaccine than its acquisition of Trillium.