Carlo Allegri is a photographer.
Pfizer said it has reached a deal to buy Arena Pharmaceuticals for $6.7 billion, and shares of Arena Pharmaceuticals almost doubled in price.
Arena jumped as much as 97 percent when they hit $98.50 before the market opened. Arena's stock went into negative territory through Friday's session. Pfizer shares were up 1% before the opening bell.
The boards of both companies approved Pfizer's proposal to acquire all of Arena's outstanding shares for $100 a share in cash. The deal will be done with cash at the vaccine maker.
Pfizer's inflammation and immunology area plans to accelerate the clinical development of etrasimod for patients with inflammatory diseases.
Etrasimod is an oral treatment for ulcerative colitis, a chronic disease where the innermost lining of the large intestine becomes inflammation and develops open sores. Arena was conducting a late-stage study called Elevate to evaluate etrasimod in addressing moderately to severely active ulcerative colitis.
Pfizer said Arena has built a robust development program for etrasimod to address a range of other inflammatory diseases.
Arena has two cardiovascular assets, APD418 and temanogrel.
Pfizer shares have gained over forty percent this year.
Business Insider has an original article.
