Pfizer to buy Canadian cancer drug developer

American pharmaceutical giant Pfizer has agreed to buy Canadian oncology drug developer Trillium Therapeutics. The deal is valued at $2.26 billion — Trillium shares will cost Pfizer three times its market value.

Pfizer will buy all outstanding Trillium papers for $18.50, according to the Financial Times. By the close of trading on Friday, August 22, Trillium shares were worth just over $6 a share. That is, Pfizer will pay three times as much for them. The premium to the average price of Trillium shares for 60 days is 118%.

Pfizer shares jumped 4% on news of the deal.

Trillium is leading the development of drugs that enhance the human innate immune system to detect and destroy cancer cells. Two of the most promising drug candidates are in the early stages of research. Pfizer hopes these drugs will revolutionize blood cancer treatment in the future.

This is not the first time the American company has invested in manufacturers of oncology drugs. Last month, Pfizer partnered with Arvinas to develop a drug for breast cancer. Previously, Pfizer invested $25 million in Trillium as part of its research funding program.