Pfizer has signed a definitive agreement for the acquisition of all the outstanding shares of clinical-stage firm Arena Pharmaceuticals in a deal worth nearly $6.7bn or $100 for each share in cash.
Pfizer will use cash on hand to fund the acquisition, which secured approval from the boards of directors of both the companies.
Arena focuses on developing new treatments for various immuno-inflammatory ailments.
Its portfolio comprises varied and encouraging treatment candidates in the gastroenterology, dermatology and cardiology areas.
The company’s oral, selective sphingosine 1-phosphate (S1P) receptor modulator, etrasimod, is presently being developed to treat gastrointestinal and dermatological immuno-inflammatory diseases.
The drug is being evaluated in two Phase III clinical trials for ulcerative colitis (UC), a Phase II/III programme for Crohn’s Disease and Phase II studies in eosinophilic esophagitis and alopecia areata.
Arena also intends to commence a Phase III programme of etrasimod to treat atopic dermatitis.
Data from a Phase II OASIS trial of etrasimod in subjects with moderate to severe UC showed that most patients attained clinical response, clinical remission, or endoscopic improvement at week 12.