Pharmaceutical giant Pfizer, which recently became one of the most popular brands in the world due to its COVID-19 vaccines, decided to sign a definitive agreement for the acquisition of the biotech cannabis company — Arena Pharmaceuticals. Namely, the world-renowned brand agreed to pay an impressive $100 per share in a deal worth $6.7 billion.
However, this is not the first time the biotech giant made such a move; in November, Pfizer bought Trillium Therapeutics — a Canadian immuno-oncology company — for $2.22 billion.
This comes to no one’s surprise seeing how Pfizer managed to generate $41.9 billion in revenue solely on COVID-19 vaccines last year, and the trend is expected to continue in 2021 (vaccine sales are expected to generate another $36 billion).
That said, Pfizer’s acquisition of Arena Pharmaceuticals also includes Olorinab (APD371), a cannabinoid-based drug candidate made by Arena Pharmaceuticals for the treatment of pain related to gastrointestinal disorders.
And as can be seen from the brand’s website, Olorinab is an oral medicine that should offer pain relief without causing any psychoactive side effects; the treatment is currently in phase 2 clinical trial.
What’s more, Arena’s president and CEO, Amit D. Munshi, believes this agreement between the two giants will not only be significant for patients but shareholders as well.
By acquiring Arena Pharmaceuticals, Pfizer became one of the newest members of the medical cannabis family, following the footsteps of other big pharma companies, such as Jazz Pharmaceutical, which bought GW Pharmaceuticals earlier this year.
Hence, we can expect this trend to continue since more and more pharmaceutical companies are showing interest in the growing medical cannabis industry.