Pfizer has been one of the best-performing stocks this year, and the company is set to close 2021 on a high note.

Pfizer Agrees to Buy Arena Pharmaceuticals

Leading pharmaceutical company Pfizer announced earlier today that it had reached a deal to acquire drug developer Arena Pharmaceuticals for $6.7 billion in cash. This latest development will allow Pfizer to develop promising treatments for diseases affecting the stomach and intestine.

Pfizer is set to acquire the company at $100 per share, which is twice ARNA’s trading price at the close of the market on Friday. Following the announcement of the deal, ARNA’s value has surged by more than 80%, and it is currently trading at $90.09 per share.

Pfizer has been acquiring companies in a bid to expand its treatment pipeline. Last month, the company acquired immuno-oncology company Trillium Therapeutics in a deal worth $2.22 billion as it looks to strengthen its arsenal of blood cancer therapies.

Arena is currently developing numerous treatments for gastroenterology, dermatology and cardiology. Etrasimod, its leading drug, is currently being tested in a late-stage study in ulcerative colitis and also a mid-to-late stage study in Crohn’s disease. Both diseases are inflammatory bowel diseases that cause ulcers in the digestive tract.

Pfizer executive Mike Gladstone said, “The proposed acquisition of Arena complements our capabilities and expertise in inflammation and immunology.” He added that the company intends to accelerate the clinical development of etrasimod.

PFE Rallies by More Than 5%

The shares of Pfizer have been rallying since the company announced that it would acquire Arena Pharmaceuticals. Since the start of the market, PFE’s value has increased by more than 5%. PFE is currently trading at $55.30 per share at press time.

PFE is one of the best-performing stocks in the health sector so far this year. Year-to-date, PFE’s value has increased by 56%, outperforming numerous pharmaceutical companies in the process.

This article was originally posted on FX Empire

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