Pfizer has agreed to acquire Arena Pharmaceuticals, a clinical-stage company developing products for several immuno-inflammatory diseases, for $6.7 billion.

Arena’s portfolio includes development-stage therapeutic candidates in gastroenterology, dermatology, and cardiology. A key product is etrasimod, an oral, selective sphingosine 1-receptor modulator currently in development for a range of immuno-inflammatory diseases, including gastrointestinal and dermatological diseases.

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

In addition, Arena’s pipeline includes two development-stage cardiovascular assets, temanogrel and APD418. Temanogrel is in Phase II for treating microvascular obstruction and Raynaud’s phenomenon secondary to systemic sclerosis. APD418 is currently in Phase II for acute heart failure.

Under 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. The proposed transaction is subject to customary closing conditions, including receipt of regulatory approvals and approval by Arena’s stockholders.

Source: Pfizer and Arena Pharmaceuticals