The firm announced on Monday that Pfizer has agreed to buy Arena Pharmaceuticals for $6.7 billion in cash to boost its cancer and inflammatory disease therapy portfolio.

Pfizer will pay $100 per share for all outstanding Arena shares, reflecting a 100.2% premium over Arena's last closing price.Pfizer, BioNTech vaccine neutralises Omicron with three shots | Reuters

The arena is working on a number of medicines in the fields of gastrointestinal, dermatology, and cardiology. Etrasimod, therapy for ulcerative colitis developed by the company, is currently in late-stage testing.

Pfizer stated that it plans to fund the deal using cash on hand.

BofA Securities and Centerview Partners advised Pfizer on the deal, while Guggenheim Securities and Evercore Group advised Arena.