Pfizer Inc. (NYSE: PFE) is looking to prop up its cancer drug lineup

In a move to expand the expertise in cancer therapies in its pipeline of cancer therapies, the Pfizer Inc. (NYSE: PFE) agreed to buy Array BioPharma Inc. (ARRY) for $10.64 billion in cash.

Pfizer Inc. (NYSE: PFE) also said that it would pay the shareholders of Array BioPharma $48 for each of its shares outstanding, with a 62% premium to the closing price of Friday. The pharmaceutical said that it would fund the transaction with debt and the existing cash.

Array BioPharma Inc. (ARRY) shares jumped 57% to $46.45 in the morning trading, while Pfizer Inc. (NYSE: PFE) shares slipped 12 cents to $42.64.

The portfolio of Array includes Mektovi and Braftovi that have been approved for the combined use in treatment of metastatic melanoma. In more than 30 clinical trials, for the tumor-related diseases, that combined therapy is currently being tested in, such as metastatic colorectal cancer.

In the U.S. almost an estimated 140,250 patients were diagnosed with the cancer of colon and rectum in 2018, and roughly about 50,000 people are dying from disease annually, according to Pfizer statement.

Pfizer Inc. (NYSE: PFE) is looking to prop up its cancer drug lineup, as it projected to generate about $8.3 billion in sales this year, according to the research firm EvaluatePharma. The company also expects the oncology products in 2019 to outsell the heart and other primary-care medicines of company was long known for.

“The proposed acquisition of Array strengthens our innovative biopharmaceutical business, is expected to enhance its long-term growth trajectory, and sets the stage to create a potentially industry-leading franchise for colorectal cancer alongside Pfizer’s existing expertise in breast and prostate cancers,” Pfizer Chief Executive Albert Bourla said in prepared remarks.