Array BioPharma has been weighing a potential sale for years, and now that it’s inked an $11.4 billion deal with Pfizer, the company’s top execs stand to reap some hefty payouts.
Really hefty, in the case of Array CEO Ron Squarer. His holdings in the company will be worth $124.77 million upon closing at the agreed-upon deal price of $48 per share, Array said in an SEC filing. And his golden parachute tots up to $85.25 million, for a total payout of more than $210 million.
Array COO Andrew Robbins’ share of the company will be worth $55.6 million, while his golden parachute comes to $43.35 million. That means he’ll reap about $99 million in the sale.
Meanwhile, Chief Medical Officer Victor Sandor has options worth $42.62 million, and his parachute payment is $36.17 million. Those figures bring his total payout to $78.8 million.
Array last month announced its $11.4 billion sale to Pfizer, which offered $48 per Array share, or a 62% premium to the company’s closing price before the announcement. It was a 110% premium, though, to Array's share price before some key data hit the news earlier this year.
Of course, Array's work to sell itself goes back way before the announcement. In the SEC filing, the cancer-focused drugmaker says it hired Centerview Partners in early 2017 to explore a potential sale. Also in early 2017, the company contacted Pfizer and other companies about a possible deal, but those talks didn’t turn up an offer.
But last year, an unnamed global biopharma approached Squarer about a potential deal, and though that company didn’t make an offer, it touched off another round of shopping. Along the way, Pfizer showed some interest and finally, after months of due diligence, the companies reached a deal. The buyout is new Pfizer CEO Albert Bourla’s first big transaction since taking the helm this year.
In the acquisition, Pfizer gets Array’s approved melanoma combo Braftovi and Mektovi. The drugs recently posted strong results in colon cancer, prompting market watchers to speculate about potential blockbuster sales. Array additionally has its own internal drug candidates and a list of out-licensed drugs that could generate substantial royalties over time.