Pfizer Inc. (NYSE: PFE) announced on Monday the definitive agreement to acquire clinical stage biopharmaceutical firm Arena Therapeutics (Nasdaq: ARNA). The transaction is reportedly valued at approximately US$6.7 billion.

Under the terms of the agreement, Pfizer will acquire all Arena’s outstanding shares at US$100.00 per share.

“The proposed acquisition of Arena complements our capabilities and expertise in Inflammation and Immunology,” said Global President & General Manager Mike Gladstone. “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’s portfolio, currently all in clinical trials or exploratory stages, includes drug candidates meant to treat a host of diseases in gastroenterology, dermatology, and cardiovascular–like ulcerative colitis, atopic dermatitis, and acute heart failure.

In particular, the biotech firm’s drug candidate olorinab is an investigational full agonist of the cannabinoid type 2 receptor initially being explored to treat visceral pain associated with gastrointestinal disorders. 

The transaction is expected to be funded by Pfizer’s cash on hand.

Pfizer last traded at US$61.25 on the NYSE while Arena Therapeutics last traded at US$92.21 on the Nasdaq.

Information for this briefing was found via the companies mentioned. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.