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Pfizer Acquires Arena Pharmaceuticals For $6.7 Billion; A Company With Developing Cardiovascular & Immuno-Inflammatory Disease Treatments


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On Monday, Pfizer agreed to acquire Arena Pharmaceuticals Inc. for $6.7 billion to secure a treatment candidate for inflammatory bowel diseases.

Analysts commented that Pfizer possessed $27.7 billion in cash and short-term investments at the beginning of October.

Just last month, the company acquired immuno-oncology company Trillium Therapeutics for about $2.22 billion to stockpile blood cancer therapies.

With the latest acquisition, Pfizer will add several developing treatments for gastroenterology, dermatology and cardiology.

Below is the Arena Pharmaceuticals Press Release:

Pfizer Inc. (NYSE: PFE) and Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today announced that the companies have entered into a definitive agreement under which Pfizer will acquire Arena, a clinical stage company developing innovative 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 and promising development-stage therapeutic candidates in gastroenterology, dermatology, and cardiology, including etrasimod, an oral, selective sphingosine 1-phosphate (S1P) receptor modulator currently in development for a range of immuno-inflammatory diseases including gastrointestinal and dermatological diseases.

“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 & General Manager, 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.”

Arena has built a robust development program for etrasimod, including two Phase 3 studies in ulcerative colitis (UC), a Phase 2/3 program in Crohn’s Disease, a planned Phase 3 program in atopic dermatitis, and ongoing Phase 2 studies in eosinophilic esophagitis and alopecia areata.

In UC, the randomized, placebo-controlled, dose-ranging, Phase 2 study (OASIS) evaluated the efficacy and safety of etrasimod in moderate to severe UC patients over 12 weeks versus placebo. In the study, most patients who achieved clinical response, clinical remission, or endoscopic improvement at week 12 experienced sustained or improved effects up to week 46 with etrasimod 2 mg in the open-label extension. Etrasimod also demonstrated a favorable benefit/risk profile, consistent with safety findings reported in the double-blind portion of OASIS. The findings are encouraging as there remains significant unmet need for safe and effective oral therapies in UC for patients with inadequate response, loss of response, or intolerance to conventional or advanced therapies. The OASIS trial supported the advancement of the ELEVATE UC 52 and UC 12 trials, which are currently fully enrolled, and for which data are expected in 2022.

In addition, 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 secondary to systemic sclerosis. APD418 is currently in Phase 2 for acute heart failure.

“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 Chief Executive Officer 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.”

Notice how Arena Pharmaceuticals has developing treatments for cardiovascular issues, inflammatory diseases, and autoimmune disorders.

Pfizer’s acquisition has raised suspicions that they’re preparing to treat individuals who develop long-term health problems due to the COVID-19 jabs.

Recent studies have shown a link between the mRNA COVID-19 jabs and increased cardiac inflammation, so Arena’s cardiovascular treatments raise the most suspicions.

CNBC added:

Arena is developing several treatments for gastroenterology, dermatology and cardiology. Its lead candidate, etrasimod, is being tested in a late-stage study in ulcerative colitis, as well as a mid-to-late stage study in Crohn’s disease, both types of inflammatory bowel diseases that cause ulcers in the digestive tract.

Pfizer is also developing a treatment for ulcerative colitis, a chronic and inflammatory bowel disease that affects 3 million people in the United States. The candidate is currently in a mid-stage study, which is expected to be completed by the end of next year.

“The proposed acquisition of Arena complements our capabilities and expertise in inflammation and immunology,” Pfizer executive Mike Gladstone said, adding the company plans to accelerate the clinical development of etrasimod.

″(Arena) was our top pick for 2022, so Christmas came a bit early… We would not expect another bidder to come in at this point,” said Wells Fargo analyst Derek Archila.

Archila said he expects positive data from the late-stage trial based on etrasimod’s performance in an earlier study. He estimated peak sales of $2.5 billion, assuming the treatment is approved and is found to be more effective than Bristol Myers Squibb’s currently-approved Zeposia.


 

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