Pfizer to acquire US biopharma company Arena Pharmaceuticals for $6.7bn
Pfizer has agreed to acquire Arena Pharmaceuticals, a publicly-listed clinical stage biopharma company based in the US, for about $6.7 billion.
As per the terms of the deal, Pfizer will acquire all the shares of Arena Pharmaceuticals for $100 per share in cash. The deal has been unanimously approved by the boards of directors of both firms.
Based in California, Arena Pharmaceuticals is focused on developing therapies for various immuno-inflammatory diseases.
The company’s portfolio includes development-stage therapeutic candidates across the areas of gastroenterology, cardiology, and dermatology. These include etrasimod — an oral, selective sphingosine 1-phosphate (S1P) receptor modulator, which is presently being developed for a variety of immuno-inflammatory diseases such as gastrointestinal as well as dermatological diseases.
Commenting on Pfizer acquisition of Arena Pharmaceuticals, Mike Gladstone — Global President and General Manager, Pfizer Inflammation and Immunology, 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 immuno-inflammatory diseases with a need for more effective treatment options.
“Utilizing Pfizer’s leading research and global development capabilities, we plan to accelerate the clinical development of etrasimod for patients with immuno-inflammatory diseases.”
Arena Pharmaceuticals’ development program for etrasimod features a couple of phase 3 clinical studies in ulcerative colitis (UC), a phase 2/3 program in Crohn’s Disease, a proposed phase clinical 3 program in atopic dermatitis, and ongoing phase 2 trials in alopecia areata and eosinophilic esophagitis.
Additionally, the pipeline of the US biopharma company has a couple of development-stage cardiovascular assets — temanogrel and APD418.
While temanogrel is presently in phase 2 development for the treatment of microvascular obstruction and Raynaud’s phenomenon secondary to systemic sclerosis, APD418 is currently in phase 2 clinical stage for acute heart failure.
Amit D. Munshi — President and CEO of Arena Pharmaceuticals, commenting on Pfizer acquisition of Arena Pharmaceuticals, said: “We’re delighted to announce Pfizer’s proposed acquisition of Arena, recognizing Arena’s potentially best in class S1P molecule and our contribution to addressing unmet needs in immune-mediated inflammatory diseases.
“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.”
Pfizer acquisition of Arena Pharmaceuticals is subject to regulatory approvals, the latter’s stockholders’ approval and other customary closing conditions.