The stock of the Arena Pharmaceuticals, Inc. (ARNA) gained significantly in the current market after the news came into the market that Pfizer has acquired the Arena Pharmaceuticals. The stock traded at $96.50 in the current session, gaining 93.23% from the previously closed value. At the end of the last trading session the stock closed at $49.94. The average volume of the stock traded in the last trading session was around 498.10K.
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Reasons of the stock gain:
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Today in a press release by Pfizer has announced that both the companies have entered into a clear agreement under which Arena Pharmaceuticals will be acquired by Pfizer. Arena Pharmaceuticals is clinical stage San Diego based Biotech Company, they are known for their development in innovative and potential therapies for the treatment of many immuno-inflammatory diseases.
According to the terms of the merger agreement, the outstanding shares of Arena will be acquired by Pfizer for $100 per share in an all-cash transaction. This is a 100% premium price as compared to the last closed value of Area’s stock. The total equity value of the transaction is approximately $6.7 billion. The boards of directors of Pfizer and Arena have unanimously approved the transaction.
Arena’s portfolio is much diversified. It has promising development-stage therapeutic candidates in gastroenterology, dermatology, and cardiology, including etrasimod, an oral, selective sphingosine 1-phosphate (S1P) receptor modulator. That is currently in development for various immuno-inflammatory diseases including gastrointestinal and dermatological diseases.
Pfizer said that the acquisition of Arena will accompany their capabilities and expertise in Inflammation and Immunology. The innovation engine of Pfizer is currently in process of developing the potential therapies for the patients with debilitating immuno-inflammatory diseases that need more options in effective treatment.
Effect on the stock:
After this news, the stock of the Arena Pharmaceuticals, Inc. (ARNA) surged in the Pre-market and was trading between $95-96.5 per share. This was a major move in the market today and investors are expecting the stock to go gain more value after the acquisition of Pfizer. With this acquisition the stock of Pfizer also gained value.
With this acquisition of Arena Pharmaceuticals, Inc. (ARNA) by Pfizer, they are expecting that the expertise of the Arena’s in certain niches will complement their therapies of various diseases. Due to which the company is expecting is to see a significant increase in its revenue.