How Pfizer Is Getting Into Cannabis With $6.7B Arena Pharma Deal

Pharmaceutical giant Pfizer Inc. (NYSE: PFE) is entering the space via the $6.7 billion acquisition of Arena Pharmaceuticals, Inc. (NASDAQ: ARNA). The two publicly-traded companies confirmed Monday that they have signed a definitive agreement under which Pfizer will acquire all outstanding shares of Arena for $100 per share in an all-cash transaction.

Pfizer expects to finance the transaction with existing cash on hand upon obtaining all necessary approvals. 

Arena Pharmaceuticals, based in San Diego, Cal., is a biotech company with one segment of its drug pipeline dedicated to cannabinoid-type therapeutics. The core of its biotech operations is the and development of its investigational drug candidate called Olorinab (APD371). This is an oral full agonist of the cannabinoid receptor 2 that is being researched for the treatment of various symptoms, mainly concentrated on visceral pain connected with gastrointestinal illnesses.

Other parts of Arena's drug pipeline are concentrated on non-cannabinoid drugs with the main focus on developing innovative potential therapies for the treatment of several immuno-inflammatory diseases. Arena’s portfolio …

Full story available on Benzinga.com

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