(Pfizer) Pfizer Inc. is expecting to acquire drugmaker Arena Pharmaceuticals in a cash deal valued at $6.7 billion.
The addition of Arena expands Pfizer’s product portfolio, with the target known for developing drugs for treating diseases of the intestines and the stomach.
Pfizer is offering $100 per share — double Arena’s closing price but surged 92% to $95.90 on the deal announcement.
Pfizer executive Mike Gladstone says the planned acquisition of Arena complements the drugmaker’s expertise and capabilities in immunology and inflammation.
Arena deal is the latest by Pfizer after acquiring Trillium last month in a deal valued at $2.22 billion in a bid to strengthen its blood cancer treatment. The deal is expected to close in the first half of next year.
PFE: NYSE is up +4.83%, ARNA: NASDAQ is up +83.77%.
