This blog is another installment in a series, Innovations Advanced by M&A, that underscores the unique role of mergers and acquisitions in promoting a competitive and innovative life sciences ecosystem for patients. You can find previous blogs in this series here.
In the life sciences industry, mergers and acquisitions (M&A) are a vital mechanism for transforming early-stage discoveries into approved treatments and cures for patients. By allowing companies of all sizes to partner and combine their complementary capabilities and expertise, life sciences M&A plays a unique and fundamental role in helping to bring innovative therapies to market quickly and effectively.
The acquisition of Arena Pharmaceuticals by Pfizer in 2022 enabled the development and commercialization of Velsipity (etrasimod), an innovative therapy for moderate to severe ulcerative colitis (UC). UC is a chronic inflammatory bowel disease that affects up to 1 in 250 people in North America. It imposes a significant health and economic burden on patients and often requires lifelong treatment to manage symptoms and complications. UC treatment often involves a trial-and-error approach due to varying responses among individuals, which means that a variety of treatment options are constantly being researched and developed.
Arena was founded in 1997 in San Diego, California, with a focus on discovering and developing innovative therapies that target specific signal receptors in the body linked to a number of disease processes. After the company initially faced challenges commercializing a medicine for obesity, Arena narrowed its focus on immunology, which was an area where it had built a considerable pipeline of promising therapies. Arena looked to partner with a company to help deliver these treatments to patients more efficiently. That’s where Pfizer’s commercial experience in immunology proved critical.
“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. Utilizing Pfizer’s leading research and global development capabilities, we plan to accelerate the clinical development of etrasimod for patients with immuno-inflammatory diseases.” – Mike Gladstone, Global President & General Manager, Pfizer Inflammation and Immunology
The acquisition combined Arena’s deep expertise in immunology and Pfizer’s commercial infrastructure, regulatory expertise and global operations to bring Velsipity to market. In 2023, Velsipity was approved by the FDA, making it just the second oral treatment for moderate to severe UC.
“…Recognizing Arena’s potentially best in class S1P molecule and our contribution to addressing unmet needs in immune-mediated inflammatory diseases…Pfizer’s capabilities will accelerate our mission to deliver our important medicines to patients.” – Amit D. Munshi, President and Chief Executive Officer, Arena
This example illustrates how life sciences M&A fuels competition and innovation in the life sciences. It’s critical that policymakers recognize and support the unique and fundamental role of M&A in the U.S. biopharmaceutical industry.