Pfizer is entering the cannabis business with a $6.7 billion investment
Pharmaceutical company Pfizer Inc. is entering the cannabis sector with the US$6.7 billion acquisition of Arena Pharmaceuticals, Inc. On Monday, both companies confirmed that they have signed a definitive agreement under which Pfizer will acquire all outstanding shares of Arena for $100 per share in cash.
Arena Pharmaceuticals, based in San Diego, California, is a biotech company that focuses its drug portfolio on cannabinoid-type therapeutics. The core of its cannabis biotech activities is the research and development of an investigational drug called olorinab (APD371), an orally ingested cannabinoid receptor 2 that is being researched for the treatment of various symptoms, but primarily for pain associated with gastrointestinal disorders.
Other parts of Arena’s drug portfolio focus on medicines, with an emphasis on developing innovative potential therapies for the treatment of visceral pain and immune inflammatory diseases.
“The proposed acquisition of Arena complements our capabilities and expertise in inflammation and immunology, a Pfizer innovation engine for developing potential therapies for patients with debilitating immune inflammatory diseases who need more effective treatment options,” said Mike Gladstone, Global President & General Manager.
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