Pfizer (NYSE:) will acquire ReViral in the U.K. for $525 million including milestone payments.

Pfizer will now have access to the experimental treatments for the respiratory syncytialvirus (RSV). This is a common viral infection that affects the airways and causes symptoms similar to those of a cold.

ReViral has developed four RSV therapies. Two of them are in the middle-stage stages, while sisunatovir, its most popular therapy, is currently being tested.

Pfizer has now completed the second purchaseout transaction in six months, following the acquisition of Arena Pharmaceuticals by U.S. Biopharmaceutical Group for $6.7 Billion in December.

GlobalData estimates that RSV prevention will increase 14x to $6.3Billion in 2020-2030. Global Drugmakers are encouraged to take advantage of the market opportunities.

BMO analyst Evan Seigerman said that he would have liked to see something more impactful for Pfizer’s nearer-term P&L. Still, he added that the ReViral acquisition doesn’t prevent Pfizer from doing a bigger M&A.

These treatment assets have a potential $1.5B peak in sales (64M cases annually, 160k deaths around the world), so the company should continue to work with BD. The analyst stated in a client letter that we are interested in assets like Trikafta/CF and Tepezza/Krystexxa. We also want assets in neurology (Nurtec’s US rights) as well as dermatology (e.g. Opzelura).

Robyn Karnaskas, Truist analyst commented:

We see this acquisition of a -1) Ph1/2 POC; 2) private company; 3) with pipeline in an area of unmet need, as a potential return to M&A, especially in an environment where companies seem to face hurdles going public.

Stocks of Pfizer closed yesterday at $52.87

By Senad Karaahmetovic