Pfizer has entered into a definitive agreement with Arena Pharmaceuticals to acquire the clinical-stage company which is developing a cannabinoid-based therapeutic.
Pfizer’s proposed acquisition will see the pharma giant acquire the San Diego-based Arena Pharmaceuticals’ for a total equity value of $6.7bn. Arena, which is aiming to address unmet needs for immunoinflammatory diseases, is currently developing a cannabinoid therapeutic – Olorinab.
Arena’s Olorinab (APD371) is a non-psychoactive oral, full agonist of the CB2 receptor which is currently being investigated for a number of indications.
The company says its initial focus is for visceral pain associated with gastrointestinal disorders, with the drug’s CAPTIVATE Phase 2 clinical trial exploring its efficacy for irritable bowel syndrome (IBS) associated pain.
Read more: Global cannabinoid pharmaceuticals market to reach £1.53bn by 2025
The company’s portfolio also includes a number of other, non-cannabinoid-related therapeutics in the areas of gastroenterology, dermatology and cardiology.
Notably, its oral, selective sphingosine 1-phosphate (S1P) receptor modulator – etrasimod – is currently in development for several immunoinflammatory diseases, including gastrointestinal and dermatological diseases.
Commenting on the acquisition, global president and general manager at Pfizer Inflammation and Immunology, Mike Gladstone, 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 immunoinflammatory diseases with a need for more effective treatment options.
“Utilising Pfizer’s leading research and global development capabilities, we plan to accelerate the clinical development of etrasimod for patients with immunoinflammatory diseases.”
Arena president and CEO, Amit Munshi, added: “We’re delighted to announce Pfizer’s proposed acquisition of Arena, recognising 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.”
The move marks the second pharmaceutical giant to enter into the medical cannabis space – with the $7.2bn (~£5.4bn) Jazz Pharmaceuticals takeover of medical cannabis giant GW Pharmaceuticals in February 2021. GW Pharmaceuticals has developed the only two cannabis-derived treatments to be approved and licensed for use so far in the UK – Epidyolex and Sativex.
The Pfizer acquisition announcement has seen Arena’s stocks soar a massive 80 per cent this week. This year, Pfizer’s stocks reached a record intraday high – overtaking the company’s previous high in 1999 – with revenue reaching $24.1bn in Q3 (up 130 per cent) and an annual revenue forecast of $82bn for 2021.
Under the terms of this agreement, Pfizer will acquire all the outstanding shares of Arena for $100 per share in an all-cash transaction.
Arena currently has no medicines or products approved for use by any health authority.
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