Pfizer (PFE) - Get Pfizer Inc. Report said Monday it will buy Arena Pharmaceuticals (ARNA) - Get Arena Pharmaceuticals, Inc. Report in a deal that values the San Diego-based biotech group at around $6.7 billion.
Pfizer will pay $100 per share in cash for Arena, regulatory filings indicted, a 100% premium to the group's Friday closing price. Pfizer said it expects to finance the transaction with existing cash on hand.
“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 Pfizer's Mike Gladstone. “Utilizing Pfizer’s leading research and global development capabilities, we plan to accelerate the clinical development of etrasimod for patients with immuno-inflammatory diseases.”
Arena Pharmaceuticals shares were marked 84% higher in early trading Monday to change hands at $95.11 each. Pfizer shares were marked 4.2% higher at $54.92 each.
Pfizer shares were also on the move after a U.K. study showed that a third shot of the drugmaker's Covid vaccine provides solid protection against Omicron and analysts at UBS lifted their rating and price target.
The UK Health Security Agency said a Pfizer booster shot provided around 75% protection against symptomatic infections from Omicron, based on a study of 581 people identified as having the new variant, compared to around 90% against the Delta variant.
Pfizer shares were also lifted by a note from UBS analyst Colin Bristow, who increased his price target on the drugmaker by $8, to $60 a share, while improving his rating on the stock to 'buy' from 'neutral'.