World News | Pfizer to Pay $6.7B in Cash for Arena Pharmaceuticals

New York, Dec 13 (AP) Pfizer is spending USD 6.7 billion to buy a drugmaker that is developing treatments for inflammatory conditions like Chrohn's disease but has no products on the market.

The pharmaceutical giant said Monday it will pay USD 100 in cash for each share of Arena Pharmaceuticals in a deal already approved by the boards of both companies.

Also Read | First Death Due to Omicron COVID-19 Variant Recorded in UK, Says PM Boris Johnson.

Shares of Arena nearly doubled in premarket trading Monday after closing at USD 49.94 Friday.

Pfizer believes that Arena will bolster its expertise in inflammation and immunology. It plans to pay for the acquisition with cash on hand.

Also Read | COVID-19 Omicron Variant Could Cause Up to 75,000 Deaths in UK by April 2022 End, Warns Study.

Arena has a potential treatment for ulcerative colitis in late-stage clinical testing that it also is testing to treat Chrohn's disease. The company is developing possible treatments is in dermatology and for acute heart failure.

Arena Pharmaceuticals Inc., based in Park City, Utah, has lost nearly USD 461,000 through the first nine months of this year. Most of its revenue comes from royalties.

Arena's stock climbed to USD 95.11 before the opening bell. Shares of Pfizer Inc., based in New York, rose 60 cents to USD 53.38. (AP)

(The above story is verified and authored by Press Trust of India (PTI) staff. PTI, India’s premier news agency, employs more than 400 journalists and 500 stringers to cover almost every district and small town in India.. The views appearing in the above post do not reflect the opinions of LatestLY)