We've updated our Privacy Policy to make it clearer how we use your personal data.

We use cookies to provide you with a better experience, read our Cookie Policy

Advertisement
Analytical Cannabis Logo
×

Home > News > Policy

Pfizer Enters Medical Cannabis Sector With $6 Billion Acquisition

By Leo Bear-McGuinness

Published: Dec 17, 2021   

Complete the form below and we will email you a PDF version of "Pfizer Enters Medical Cannabis Sector With $6 Billion Acquisition"

First Name*
Last Name*
Email Address*
Country*
Company Type*
Job Function*
Would you like to receive further email communication from Analytical Cannabis?

Analytical Cannabis Ltd. needs the contact information you provide to us to contact you about our products and services. You may unsubscribe from these communications at any time. For information on how to unsubscribe, as well as our privacy practices and commitment to protecting your privacy, check out our Privacy Policy

Pfizer Enters Medical Cannabis Sector With $6 Billion Acquisition

The pharmaceutical company Pfizer has taken its first step into the cannabis market.

The company and producer of the Pfizer coronavirus vaccine announced on Monday, December 13, that it had entered into an agreement to acquire Arena Pharmaceuticals, a San Diego-based company currently developing, among other drugs, a cannabinoid therapeutic called Olorinab.

According to Arena, Olorinab acts as an agonist to the cannabinoid type 2 receptor (CB2) and is being developed as a possible treatment for visceral pain associated with irritable bowel syndrome (IBS) and other gastrointestinal disorders.

Under the terms of the agreement between Arena and Pfizer, the latter will acquire all the outstanding shares of Arena for $100 per share, an all-cash transaction that will approximately total $6.7 billion.

“The proposed acquisition of Arena complements our capabilities and expertise in Inflammation and Immunology, a Pfizer innovation engine developing potential therapies for patients with debilitating immuno-inflammatory diseases with a need for more effective treatment options,” Mike Gladstone, global president and general manager of Pfizer’s inflammation and immunology division, said in a statement.

The acquisition has been welcomed by some in the cannabis industry as an encouraging sign that the pharmaceutical industry is now embracing the medical potential of cannabis chemicals.

Commenting on the news, Nawan Butt, a portfolio manager for the Medical Cannabis and Wellness UCITS ETF index, said, “This acquisition displays the interest big pharma is taking in the fast-evolving world of cannabinoids.”

“We are encouraged by the acquisition as it provides more resources and a wider platform for pharmaceutical development of cannabinoids.”

 

Like what you just read? You can find similar content on the topic tags shown below.

Policy Science & Health

Stay connected with the latest news in cannabis extraction, science and testing

Get the latest news with the FREE weekly Analytical Cannabis newsletter

 
Advertisement