Pfizer Inc said Monday it will buy drug developer Arena Pharmaceuticals for $6.7 million in cash, adding a promising lineup of candidate therapies for stomach and intestinal ailments.
Pfizer’s offer of $100 per share represents about twice the price of Arena’s shares before the closing of its last trading round, which pushed its stock up 92% to $95.90 in pre-market trading.
The deal is the latest for Pfizer this year to expand its line of drugs, as the US company last month acquired immuno-oncology company Trillium Terabiotics for $2.22 billion to strengthen its arsenal of leukemia treatments.
Arena is working on the development of several treatments for diseases of the digestive system, skin and heart diseases, and its most important compound – Estrasimod – is currently being tested in the final stages of studies for the treatment of ulcerative colitis, in addition to being in the middle and last stage of the study for the treatment of Crohn’s disease, as these two diseases are inflammatory abdominal diseases that cause ulcers in the digestive tract.
Pfizer is also developing a treatment for ulcerative colitis, an inflammatory autoimmune disease that affects about 3 million people in the United States, and its drug candidate is currently in a mid-stage study that is expected to be completed by the end of next year.
This transaction is expected to close during the first half of 2022.