Pfizer Surges to 12-Year Highs, Acquires Gene Therapy Company

drugsDrugmaker Pfizer Inc. (NYSE:PFE) on Monday announced the acquisition of a gene therapy company Bamboo Therapeutics, which helped spike PFE to its highest levels since 2004.

The $150 million acquisition, although small, could pay off big for Pfizer in the coming years. PFE is looking to gain a larger presence in the gene therapy space, and Bamboo provides an easy foothold to climb from. Pfizer had previously acquired a 22% stake in privately-held Bamboo earlier this year.

Said the company in a statement: “This acquisition significantly expands Pfizer’s expertise in gene therapy by providing Pfizer with a clinical and several pre-clinical assets that complement the company’s rare disease portfolio, an advanced recombinant Adeno-Associated Virus (rAAV) vector design and production technology, and a fully functional Phase I/II gene therapy manufacturing facility that Bamboo acquired from the University of North Carolina earlier this year.”

Pfizer is also slated to report its second quarter earnings prior to the opening bell tomorrow, and investors are piling into the stock, expecting a big beat.

Pfizer shares rose to $37.39, up $0.50 (+1.36%) in Monday morning trading. The stock has now gained more than 15% year-to-date, more than doubling the returns of the S&P 500 in the same period.

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PFE’s big gains this year have actually pushed the stock to its highest levels since early 2004, and are adding to the gains of the Biotech ETF (IBB), which is bouncing strongly from its late-June lows.

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