(Bloomberg) — Pfizer Inc. agreed to buy Arena Pharmaceuticals Inc. in a deal valued at about $6.7 billion, gaining potential therapies targeting immuno-inflammatory diseases.
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The U.S. drugmaker will pay $100 a share in an all-cash transaction for San Diego-based Arena, bringing assets in gastroenterology, dermatology and cardiology, according to a statement Monday. That’s about double Arena’s Friday closing price.
Pfizer, collaborator with BioNTech SE on the widely used Comirnaty Covid-19 vaccine, said the deal complements its capabilities in inflammation and immunology and will contribute to growth through 2025 and beyond.
Pfizer plans to speed up clinical development of etrasimod, Arena’s experimental treatment for immuno-inflammatory diseases, said Mike Gladstone, global president and general manager of the drugmaker’s inflammation and immunology business.
Arena surged 95% in U.S. pre-market trading. The boards of both companies have unanimously approved the transaction.
Pfizer rose 1.6% before regular trading opened.
(Updates with plans for acquisition.)
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