Arena Pharmaceuticals up 90% after acquisition announcement
Pfizer Inc (NYSE: PFE) executed a definitive agreement with Arena Pharmaceuticals (Nasdaq: ARNA), under which Pfizer Inc will acquire Arena Pharmaceutical for a total equity value of around $6.7 billion. Arena went up 90% after this announcement.
Arena Pharmaceuticals is a clinical-stage company that focuses on developing therapies for treating immune-inflammatory diseases. Both companies’ board unanimously approved the deal.
Arena’s business portfolio
Arena Pharmaceutical’s portfolio includes promising and diverse development-stage candidates in dermatology, gastroenterology, and cardiology to treat immune-inflammatory diseases. Pfizer’s General Manager, and Global President, Mike Gladstone, said:
The proposed acquisition of Arena complements our capabilities and expertise in inflammation and immunology, a Pfizer innovation engine developing potential therapies for patients with debilitating immune-inflammatory diseases with a need for more effective treatment options.
The CEO claimed that they plan to boost the clinical-stage development of etrasimod to treat immune-inflammatory diseases. He says they plan to use their global development and leading research capabilities.
Arena has created a solid development program for etrasimod. This includes a pair of Phase III trials in UC (Ulcerative colitis), a Phase II and III program Crohn’s Disease and ongoing Phase II studies in alopecia areata and eosinophilic esophagitis. Arena’s Chief Executive Officer and President, Amit Munshi, said:
Pfizer’s capabilities will accelerate our mission to deliver our important medicines to patients. We believe this transaction represents the best next step for both patients and shareholders.
Details of the agreement
Pfizer Inc expects to buy Arena using its existing cash on hand. According to the terms of the agreement, Pfizer will get Arena’s outstanding shares of common stock valued at about $100 per share. These shares represent a total equity value of around $6.7 billion.
Mr. Munshi, Arena’s Chief Executive Officer, and President said they were happy to announce the definitive agreement deal they reached with Pfizer Inc. He claimed that they were delighted that Pfizer recognized their leading S1P molecule and the contribution to the unmet need of people battling immune-inflammatory diseases.
Arena Pharmaceuticals’ pipeline also has a pair of developmental-stage cardiovascular candidates APD418 and temanogret, currently in Phase II medical trials.
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