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Pfizer to Buy Arena Pharmaceuticals in $6.7 Billion Deal. Arena Stock Soars.

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Pfizer

has agreed to buy U.S. biotech company


Arena Pharmaceuticals

in a deal valued at about $6.7 billion.

The U.S. pharma giant said the acquisition would expand its cancer and inflammatory disease drug pipeline.

Shares in Arena Pharmaceuticals (ticker: ARNA) surged 93% to $96.45 in premarket trading, while Pfizer (PFE) stock climbed 1.6%. Under the agreement, Pfizer will acquire all the outstanding shares of Arena for $100 a share in an all-cash deal. That represents a 100.2% premium to Friday’s closing price on Arena shares.

Arena’s drug pipeline include several candidates as treatments in gastoenterology, dermatology and cardiology. One such drug is etrasimod, which is currently in development for a range of immuno-inflammatory diseases in late-stage studies.

“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 and General Manager, Pfizer Inflammation and Immunology.

The company said it expects to finance the transaction with existing cash in hand.

Write to Callum Keown at callum.keown@dowjones.com

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