Pfizer enter the cannabis Industry.

Based in San Diego, Cal., Arena Pharmaceuticals is a biotech company with one department of its drug pipeline devoted to cannabinoid-based therapeutics.  

The centre of its cannabis biotech operations is researching and developing its investigational drug candidate "Olorinab". This is a complete oral agonist of the cannabinoid receptor two that is being investigated to treat various symptoms of gastrointestinal illnesses. 

Other parts of Arena's drug pipeline focus on non-cannabinoid drugs, mainly developing innovative potential therapies to treat various immuno-inflammatory diseases.

"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" -Mike Gladstone, global president & general manager, Pfizer Inflammation and Immunology. 

Arena is reportedly delighted to have been acquired by Pfizer. "Pfizer's input will accelerate our mission to deliver important medicines to patients. This represents the best next step for both patients and shareholders." Amit D. Munshi, CEO of Arena. 

This is not the first acquisition of a cannabis-related company by one of the largest pharmaceuticals companies in the world. In February 2021, Jazz Pharmaceuticals bought out Cannabinoid drug company GW Pharmaceuticals. GW is best known for developing Epidiolex, the first FDA-authorized CBD medicine for treating children with severe forms of epilepsy. 

It was effective in treating the seizures experienced with Lennox-Gastaut syndrome and Dravet syndrome. Last July, Epidiolex was also found to be successful in treating seizures related to tuberous sclerosis complex. Last year Epidiolex sales generated more than $500 million.

In 2018, the Canadian cannabis giant Tilray entered a supply and distribution agreement for medical marijuana with pharmaceutical giant Novartis AG. Johnson & Johnson was another big pharma company and a household name that dipped its toes into cannabis. In 2017 they accepted cannabis company Avicenna into their Innovation JLABS@Toronto. This is a 40,000-square-foot life science innovation centre. The labs offer a flexible environment for startup companies pursuing new technologies and research platforms to advance medical care. This is without Johnson & Johnson taking an equity stake in these companies.