They have raised a lot of eyebrows!
Pfizer stock has reached an all-time high on the back of an announcement that they would be acquiring Arena Pharmaceuticals.
After the announcement, Arena Pharmaceuticals stock shot up by 90%. In the statement it was revealed Pfizer would buy the pharmaceuticals company in a deal valued at $6.7 billion. This figure was more than double Arena’s market capitalization when the deal became public.
Pfizer’s reasons for paying double the $49 share price seem valid, given Arena’s extensive late-stage research and development.
In a statement, Pfizer’s global president and general manager, Mike Gladstone, said that the company was interested in acquiring Arena’s robust etrasimod development program. The program included two Phase 3 studies in ulcerative colitis, a phase 2/3 study in Crohn’s Disease, in addition to a phase 3 program in atopic dermatitis. Arena also had an ongoing Phase 2 study in eosinophilic esophagitis and a study in alopecia areata.
Gladstone concluded the statement by saying Pfizer would fund the purchase with cash on hand.
Arena Pharmaceuticals is the latest acquisition following another acquisition of Biotech Trillium Therapeutics in August and displays Pfizer’s desire to become a behemoth in the pharmaceuticals industry, on what many believe is the success of their COVID-19 vaccine program.