Pharmaceutical giant Pfizer said it plans to buy San Diego-based Arena Pharmaceuticals, Inc., which is researching and developing cannabinoid-based medicines for patients who suffer gastrointestinal disorders, the companies announced this week.
Pfizer agreed to pay $100 per share for all shares in the company, or a total $6.7 billion cash.
The acquisition includes Olorinab, a cannabinoid-based oral application for pain associated with bowel disease that is in the “investigational” stage and is not currently approved for the market.
In addition to cannabinoid therapeutics, Arena is developing other drugs for the treatment of immune-inflammatory diseases.
The deal is subject to closing conditions, regulatory approvals and approval by Arena’s stockholders.
Arena reported a net loss of $196.3 million for the third quarter 2021, compared to a net loss of $70 million for the same period in 2020.