Shares of the Trillium Therapeutics Inc. (TRIL) stock skyrocketed in the Pre-market after its definitive agreement with Pfizer. TRIL stock soared by 187.77% to reach $17.52 a share at the time of this writing. The trading volume as of this writing was 470,070. In the previous trading session, the stock gained 3.92% at closing. Let’s dig into recent events.

Pfizer to Acquire TRIL stock:

Pfizer stock today announced that it has signed a definitive agreement with Trillium Therapeutics Inc. under which the former will acquire the latter. Covid-19 vaccine maker will acquire all the outstanding shares of TRIL stock at a per-share price of $18.50 in cash. The equity value for this acquisition will be approximately $2.26 billion. The per-share price set for the acquisition represents a 118% premium to the 60-day weighted average price for TRIL stock.

Trillium’s portfolio mainly consists of biologics that increase the patient immune system’s ability to detect and fight against cancer cells. Its two lead molecules TTI-622 and TTI-621 are in phase 1b/2 development for various indications. The key focus is to fight against hematological malignancies which are cancers that affect the blood, bone marrow, and lymph nodes

Acquisition impact on TRIL stock:

This acquisition will have a positive impact on TRIL stock for both the short and long term. This acquisition reflects the great contribution of Trillium to immune-oncology. The management believes that its programs will quickly move forward through Pfizer’s global reach and deep capabilities. This agreement will prove to be good for both patients and TRIL stock’s shareholders.

Acquisition impact on Pfizer:

This acquisition will positively impact Pfizer stock as well. Pfizer will enhance its hematology portfolio through this acquisition and maintain its leading role in oncology. The company is striving hard to improve the lives of people suffering from blood cancers across the globe. Its hematology portfolio has eight approved and investigational therapies.

Financial View of TRIL stock:

• According to recently announced financial results, Trillium stock suffered a $29.3 million net loss for six months ended June 30, 2021. For the same tenure of the previous year, the net loss was $39.5 million for TRIL stock.
• Trillium stock spent  $19.9 million in research and development expenses in the first half of 2021. The stock reported $10.1 million for general and administrative expenses.
• Trillium stock had cash, cash equivalents, and marketable securities of  $264.5 million by the end of June 2021.

Conclusion:

The definitive agreement with Pfizer is the major advancement of Trillium stock which will have positive long-term effects. TRIL stock nearly tripled after the buyout agreement with Pfizer. In a nutshell, this stock can be a good bet for long-term investors.