New York, NY — Infinity Pharmaceutical Inc. shares soared after President and CEO Jim McVeigh announced a deal to buy the company for $15 billion, adding to a market that has been buying up smaller companies in recent years.
Shares rose 2.5% to $24.83 in after-hours trading.
The stock has gained 14% since the end of the year.
The company, which also makes biopharmaceuticals and other medical devices, is a leader in the area of personalized medicine, which McVeagh says will be the future of healthcare.
McVeigh said the purchase is part of a larger strategy to transform the company.
He said it is part “of our strategy to be a catalyst in bringing down the cost of medicines and reduce the cost for patients and physicians.”
McVeagh added that Infinity will focus on two areas of its business: developing new and novel therapeutics and the development of new, next-generation, and more efficient biopharma and devices.
The news comes as Pfizer Inc. has announced a $10 billion investment in Infinity Pharmaceutical, and Biogen Inc. is buying the company in a deal valued at $15.8 billion.
McKesson Corp., the world’s largest publicly traded pharmaceutical company, said in December that it was buying Infinity Pharmaceutical for $11.8 million.
The deal will give McVegh a new company that is focused on the development and commercialization of novel and next-gen drugs.
It will also allow McVeigh to expand his pharmaceutical portfolio.
McMeigh has been trying to turn around the company, saying he is focusing on the business that makes his company’s products better and more cost-effective.
He also has been taking steps to reduce costs and increase the quality of the products it sells.