Pfizer enters medical marijuana industry with $6.7 billion cannabis bet

After banking on a cannabis-based bowel illness treatment, Pfizer is joining the medicinal marijuana sector. Arena Pharmaceuticals, a clinical-stage business, signed an agreement with the biotechnology company to acquire a total ownership stake worth $6.7 billion. According to the agreement, Pfizer will get all shares at $100 per share in an all-cash transaction. Arena Pharmaceuticals has a cannabis-based medicines pipeline, with Olorinab (APD371) at the centre. According to Arena Pharmaceuticals, Olorinab (APD371) is an experimental oral full agonist for the cannabis type 2 receptor.

According to a report, the goal is to use the medication to treat patients with stomach and bowel problems, although it has not been approved for use by any health body. "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 who require more effective treatment options," said Mike Gladstone, Pfizer's global president of inflammation and immunology.