31-Jan-2022 | Market Research Store
Pfizer, a major pharma company, is investing heavily in cannabis-based bowel disease treatment to step into the medical marijuana sector. This biotechnology company agreed to take over Arena Pharmaceutical – a clinical-stage company valued at $6.7 billion.
Pfizer is set to acquire the remaining shares of Arena for $100 per share in an all-cash deal with the latest example of growth in cannabinoid-based medical research.
Arena emphasizes offering new treatment options for different immunoinflammatory elements and has a product pipeline committed to cannabis-based therapeutics. Etrasimod mode is at its core which is being created for the treatment of ulcerative colitis and Crohn's disease, which is currently in later-stage development. Arena is also working on a cannabidiol type 2 receptor antagonist with emphasis on visceral pain related to gastrointestinal disorders.
In addition, the Arena pipeline includes two development-stage cardiovascular assets– APD418 and temanogrel. Temanogrel finds its application in microvascular obstruction and Raynaud's phenomenon secondary to systemic sclerosis treatment. However, APD418 is also in phase 2 for acute heart failure treatment. APD418, temanogrel, and Etrasimod are investigational compounds that are still not approved for any purpose in any country. Pfizer is likely to close the transaction with existing cash.
The cannabis pharmaceutical market sees major companies testing new waters in medical marijuana. However, the research base of top pharma companies is aimed to move forward by commercializing cannabinoids for medical purposes. For example, Johnson and Johnson have conducted research through Canadian firm Avicanna, while on other Vapium conducted a research study for Grenco Science.
The top 9 largest pharmaceutical company AbbVie filed 59 cannabis-associated patents in the US, which is more than any other firm in the sector. However, Teva Pharmaceutical, known to be the largest supplier of generic drugs in the US, agreed with Israeli medical marijuana companies in 2019 to distribute products to pharma customers like hospitals and pharmacies in Israel.
However, in early May 2021, the Jazz Pharmaceutical Global Biopharmaceutical company bought the first FDA authorized CBD medicine for testing the kids with Dravet syndrome and Lennox-Gastaut. In addition, the company also acquired GW Pharmaceutical – the developer of Epidiolex.
Like big tobacco companies, pharma companies are inclining towards the medical cannabis sector, thereby facilitating ever seen fast-paced growth. Also, research and development in cannabinoids are generating positive output with exciting results in the treatment applications. Therefore, it is likely to see exponential growth of pharmaceutical companies in the medical cannabis space in the forthcoming years.