What does Pfizer’s $11.4 billion buyout mean?

Yesterday, Pfizer agreed to spend the above-mentioned sum on Array BioPharma, a company that specializes in the yesteryear cancer technology that just happens to be having a moment at the expense of newer ideas.

As STAT’s Matthew Herper explains, Array has made its name developing pills that home in on specific genetic mutations tied to cancer. As a numbers game, that means treating a relatively small number of patients but getting positive enough results to justify high prices.

This is by no means happening in a vacuum. Array contemporaries Loxo Oncology and Ignyta have recently been the targets of multibillion-dollar acquisitions, and the share prices of the similar Blueprint Medicines and Turning Point Therapeutics have risen on the idea that they might be next.

But it’s worth noting that a rising tide sometimes leaves boats behind. Last year, when GlaxoSmithKline bought Tesaro, a maker of targeted cancer therapies, investors speculated that the rival Clovis Oncology could be next. Sixth months later, Clovis remains independent and about 42% less valuable than it was in January.