Pfizer purchases Arena Pharmaceuticals for $6.7 billion

Pfizer has acquired Arena Pharmaceuticals, Inc., a clinical stage company that develops potential therapies for the treatment of several immuno-inflammatory diseases. Per the terms of the agreement, Pfizer will be purchasing all the outstanding shares of Arena for $100 per share in an all-cash transaction, for a total equity value of approximately $6.7 billion.

Arena’s portfolio features development-stage therapeutic candidates in gastroenterology, dermatology, and cardiology, including etrasimod, an oral, selective sphingosine 1-phosphate (S1P) receptor modulator currently in development for a range of immuno-inflammatory diseases, such as gastrointestinal and dermatological diseases. The firm has built a robust development program for etrasimod, including two Phase III studies in ulcerative colitis (UC), a Phase II/III program in Crohn’s Disease, an upcoming Phase III program in atopic dermatitis, and ongoing Phase II studies in eosinophilic esophagitis and alopecia areata.

“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,” says Mike Gladstone, global president & general manager, Pfizer inflammation and immunology.