Pfizer to acquire Arena Pharmaceuticals for $6.7 billion

Yahoo Finance Live's Julie Hyman and Brian Sozzi break down Arena Pharmaceuticals' stock surge after Pfizer announced its $6.7 billion acquisition of Arena.

Video transcript


- This is Yahoo Finance Live. We're watching futures move a little higher this morning. We're also watching a number of interesting movers this morning. We got some deal news. Pfizer-- not vaccine news for once when we're talking about Pfizer lately. It's agreed to acquire a company called Arena Pharmaceuticals, $6.7 billion. And we've got those Arena shares. Pfizer shares are up a little more a little less than 1%.

Those arena shares are surging almost to the deal price, and look at that premium there. The shares are up by 87% right now. So Arena makes a number of various experimental-stage drugs. And analysts are largely positive on Pfizer's acquisition here, although some analysts are saying they're a little surprised about the timing of the deal. There's one particular drug that Arena is developing to treat ulcerative colitis. It's an experimental drug, and analysts were surprised that Pfizer did not wait for phase three clinical data tied to that drug to come through.

But maybe there's a high degree of confidence about what it's going to show. But you know, it's, interesting that we've all been sort of, Brian, paying attention to everything COVID with regards to the pharmaceutical industry. But obviously there are other things going on in the background as well. And Pfizer wants to capitalize on that.

- Well, I'm just riding your coattails here, Jill. You're the pharma pro amongst us. But I want to say this. This is a big number, big valuation on a company. And it will be interesting to see how Pfizer integrates this large of an asset while it's still trying to fight the COVID-19 pandemic. To your point, it comes at an interesting time. Of course, with all the headlines around omicron, big valuation, lots of cash going out the door. Mixed on the deal, at least in the early going for me.

- Yeah, it looks like investors, though, are fairly positive on it, though.