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Pfizer to acquire Arena Pharmaceuticals in deal valued at about $6.7 billion

Pfizer Inc.
PFE,
+1.34%

said Monday it has agreed to acquire Arena Pharmaceuticals Inc.
ARNA,
-5.33%

in a deal with a value of about $6.7 billion. The news sent Arena shares up 91% in premarket trading. Pfizer will pay $100 per Arena share, or double its closing price Friday of $49.94. The deal will create a company with increased expertise in inflammation and immunology, according to Mike Gladstone, global president and general manager for Pfizer’s inflammation and immunology division. “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,” the companies said in a statement. Pfizer is expecting to finance the deal using cash on hand. Pfizer shares were up 1.8% premarket on the news.

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