Pharma giant Pfizer is betting big on medical cannabis.
The company has entered the medical cannabis industry and has high hopes for a promising cannabinoid-based bowel disease treatment.
Earlier this month Pfizer signed an agreement with the clinical-stage company Arena Pharmaceuticals for a total equity value of around $6.7 billion.
Under the agreement terms, Pfizer acquires all shares for $100 per share in an all-cash transaction.
According to the company’s press release, the proposed transaction will be subject to customary closing conditions, including receipt of regulatory approvals and approval by Arena’s stockholders.
Arena Pharmaceuticals has one pipeline dedicated to cannabinoid-type therapeutics and the core of its cannabis operation consists of Olorinab (APD371), an investigational, oral, full agonist of the cannabinoid type 2 receptor (CB2).
Olorinab (APD371) aims to treat patients with diseases affecting the stomach and intestine. It is an investigational drug and is not currently approved for use by any health authority.
“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 immuno-inflammatory diseases with a need for more effective treatment options,” said in the press release Mike Gladstone, Global President of Inflammation & Immunology at Pfizer.
Amit D. Munshi, President and Chief Executive Officer (CEO) of Arena, said, “We’re delighted to announce Pfizer’s proposed acquisition of Arena, recognizing Arena’s potentially best in class S1P molecule and our contribution to addressing unmet needs in immune-mediated inflammatory diseases.”
