US drugmaker Pfizer today announced it has reached a $6.7bn deal to acquire Arena Pharmaceuticals, a company developing treatments for several immuno-inflammatory diseases.
In a statement announcing the transaction, Pfizer said it will acquire all outstanding shares of Arena for $100 per share in an all-cash transaction – which represents a double premium on the company’s latest closing share price.
Pfizer is flush with cash after an extremely lucrative year thanks to its coronavirus vaccine sales and hefty contracts with governments around the world.
In a trading update last month, Pfizer raised its forecast for sales of its vaccine to $36bn in 2021 – double that of its closest rival Moderna.
As of October, the pharma group provided 80 per cent of Covid Vaccines in the EU, and 74 per cent in the US.
“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,” said Mike Gladstone, global president at Pfizer.
“Utilizing Pfizer’s leading research and global development capabilities, we plan to accelerate the clinical development of etrasimod for patients with immuno-inflammatory diseases.”
The transaction has been unanimously approved by the boards of both companies, but is subject to regulatory approval.
Pfizer provided no estimated date for the transaction’s completion.