Pharmaceutical giant Pfizer said it plans to buy San Diego-based Arena Pharmaceuticals, which researches and develops cannabis-based drugs for patients with gastrointestinal disorders, the two companies announced this week.
Pfizer has agreed to pay $100 per share for all shares in the company, or a total of $6.7 billion in cash.
The acquisition includes Olorinab, a cannabis-based oral application for pain associated with bowel disease that is still in the “screening” stage and is not currently approved on the market.
In addition to cannabis therapies, Arena is working to develop other drugs to treat inflammatory and immune-mediated diseases.
The transaction is subject to closing conditions, regulatory approvals and the approval of Arena shareholders.
Arena reported a net loss of $196.3 million for the third quarter of 2021, compared to a net loss of $70 million for the same period in 2020.