Pfizer acquires Park City's Arena Pharmaceuticals in $6.7B deal

New York City-based pharmaceutical giant Pfizer Inc. has announced that it will acquire Arena Pharmaceuticals of Park City. Arena is a clinical-stage company developing potential therapies for the treatment of several immuno-inflammatory diseases. Under the terms of the agreement, Pfizer will acquire all the outstanding shares of Arena for $100 per share in an all-cash transaction for a total equity value of approximately $6.7 billion. The boards of directors of both companies have unanimously approved the transaction.

Arena’s portfolio includes diverse development-stage therapeutic candidates in gastroenterology, dermatology and cardiology, including etrasimod, an oral medication currently in development for a range of immuno-inflammatory conditions, including gastrointestinal and dermatological diseases.

“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,” said Amit D. Munshi, president and CEO of Arena. “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 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 Mike Gladstone, global president and general manager of Pfizer Inflammation and Immunology. “Utilizing Pfizer’s leading research and global development capabilities, we plan to accelerate the clinical development of etrasimod for patients with immuno-inflammatory diseases.”

In addition to etrasimod, Arena’s pipeline includes two development-stage cardiovascular assets, temanogrel and APD418. Temanogrel is currently in Phase 2 for the treatment of microvascular obstruction and Raynaud’s phenomenon. APD418 is currently in Phase 2 for acute heart failure.

Pfizer said it expects to finance the transaction with existing cash on hand. The proposed transaction is subject to customary closing conditions, including receipt of regulatory approvals and approval by Arena’s stockholders.