Pfizer acquires Park City-based Arena Pharmaceuticals for $6.7 billion

Pfizer is acquiring Arena in a deal worth approximately $6.7 billion. Photo: Pfizer

PARK CITY, Utah — On Monday, Pfizer, the company that developed the first FDA-approved COVID-19 vaccine, announced that it acquired Park City-based Arena Pharmaceuticals, a clinical-stage company developing potential therapies for the treatment of several immuno-inflammatory diseases.

Under the terms of the current agreement, Pfizer will acquire all the outstanding shares of Arena for $100 per share in an all-cash transaction, for a total value of roughly $6.7 billion. The boards of directors of both companies have unanimously approved the transaction.

Arena “has reinvented itself in recent years after an anti-obesity drug it developed flopped in the marketplace,” according to the Wall Street Journal.

“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 press release announcing the acquisition states.

Arena has:

• Two-Phase 3 studies in ulcerative colitis (~200,000 cases annually in the U.S.),
• A Phase 2/3 program in Crohn’s Disease (~200,000 cases annually in the U.S.),
• A planned Phase 3 program in atopic dermatitis (over 3 million cases annually in the U.S.), and
• Ongoing Phase 2 studies in eosinophilic esophagitis (~150,000 cases annually in the U.S.) and alopecia areata (over 200,000 cases annually in the U.S.).

“In plain English, this means that Arena has six separate therapies that are beyond the mid-point in the 10-12 year drug development pathway that is typical these days,” writes David Politis for Silicon Slopes. “In combination, that’s also 3.75 million potential patients for Pfizer/Arena should all six potential therapies receive clearance by the U.S. Food and Drug Administration.”

“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.”