Pfizer sets its sights on cannabis with acquisition

Pfizer plans to enter the medical cannabis industry with a promising cannabinoid-based treatment for bowel disease.

Last week, US pharmaceutical and biotechnology multinational Pfizer signed an agreement with clinical-stage Arena Pharmaceuticals for a total value of approximately $ 6.7 billion.

Under the agreement, Pfizer will acquire all of Pfizer's shares for $ 100 per share in a cash transaction. In addition, the press release states that the proposed transaction is subject to customary closing conditions, including obtaining regulatory approvals and approval from Arena shareholders.

Arena Pharmaceuticals is a biotech company with a pipeline focused on cannabinoid-type therapeutics. At the heart of his cannabis operation is olorinab (APD371), a full oral agonist of the cannabinoid type 2 receptor (CB2) that was developed to treat patients with gastrointestinal disorders. As can be read on the Arena website, Olorinab is an investigational drug that is not currently approved by any health authority.

Arena's team is developing this cannabinoid-based drug with an initial focus on visceral pain related to gastrointestinal disorders. The Arena website states that this compound is being investigated for pain relief without psychoactive side effects due to its selectivity for CB2 over CB1.

CB1 and CB2 receptors bind to the endocannabinoid system, a complex cell signaling system. These receptors are everywhere in the human body. Endocannabinoids like THC and CBD can bind to both receptors and signal that the endocannabinoid system needs to become active. However, the effects depend on the endocannabinoid receptor and the interaction of the cannabinoid with the receptor.

"The proposed acquisition of Arena complements our capabilities and expertise in inflammation and immunology, a Pfizer innovation driver developing potential therapies for patients with debilitating immune inflammatory diseases who have a need for more effective treatment options," said Mike Gladstone, global president of Inflammation & Immunology at Pfizer, in the press release.

Amit D. Munshi, President and Chief Executive Officer (CEO) of Arena, said Pfizer's capabilities would accelerate Arena’s mission to deliver critical medicines to patients and believes this transaction is the best next step for patients and patients Represents shareholders.

"We are pleased to announce the proposed acquisition of Arena by Pfizer, recognizing Arena's potentially best S1P molecule and our contribution to meeting the unmet need in immune-mediated inflammatory diseases," he said.

Arena's portfolio also includes other non-annabinoid drug pipelines focused on developing innovative potential therapies for the treatment of a variety of immune-inflammatory diseases.

With the acquisition of Arena, Pfizer enters the medical cannabis industry, joining other large pharmaceutical companies in the cannabis sector.

Large pharmaceutical companies have entered the market through several operations in recent years.

Canadian research and development (R&D) company Avicanna became a resident of Jonhson & Johnson's JLabs in Toronto in 2017.

A year later, the Canadian company Tilray went global through an agreement with the Swiss pharmaceutical company Novartis AG to develop and sell its medical cannabis products in legal jurisdictions worldwide.

In May 2021, global biopharmaceutical company Jazz Pharmaceutical completed the acquisition of GW Pharmaceuticals, the developer of Epidiolex, the first FDA-approved CBD drug for the treatment of children with Lennox-Gastaut and Dravet syndromes.

Like the big tobacco companies, Big Pharma's interest in the medical cannabis industry is growing with the rapidly developing cannabinoid industry. Research and development in the field of cannabinoids leads to interesting results in treatment. Because of this, it is expected that pharmaceutical companies will continue to get involved in the medical cannabis industry in the years to come.