Pfizer to buy Arena Pharmaceuticals for $6.7B

By Ovunc Kutlu

ANKARA (AA) - US biotechnology firm Pfizer announced Monday it will buy California-based pharmaceutical company Arena Pharmaceuticals for $6.7 billion.

Pfizer said in a statement it will acquire all the outstanding shares of Arena for $100 per share in an all-cash transaction, adding it expects to finance the transaction with existing cash on hand.

Arena's stock price jumped 48% to $91.98 per share on the Nasdaq at 9.53 a.m. EDT (1453GMT), according to official figures. Pfizer shares were up 3.5% at the time.

While the boards of directors of both companies have unanimously approved the transaction, it will be subject to regulatory approvals and nod from Arena’s stockholders, the statement said.

Arena Pharmaceuticals is a clinical stage company developing innovative potential therapies for the treatment of several immuno-inflammatory diseases, according to the statement.