Pfizer stock rose near its 50-day line Friday after the drug giant wrapped its $6.7 billion takeover of biotech Arena Pharmaceuticals.
The acquisition adds the drug etrasimod to Pfizer's pipeline. Etrasimod lowers the level of white blood cells tied to inflammatory conditions. It's in testing for diseases like ulcerative colitis and eczema, and could compete against Bristol Myers Squibb's Zeposia. Zeposia is approved for ulcerative colitis and multiple sclerosis.
Arena previously said it expects the results of etrasimod testing in ulcerative colitis in the current quarter. The company is also working on two treatments for cardiovascular diseases.
"We are excited to add the impressive experience and pipeline of Arena Pharmaceuticals to Pfizer's inflammation and immunology therapeutic area, helping us further our purpose of developing breakthroughs to change the lives of those with immuno-inflammatory diseases," Mike Gladstone, Pfizer's president of inflammation and immunology, said.
On the stock market today, Pfizer stock rose 2.2% to 50.27.
Pfizer Stock: Russia Investments Halted
Also Friday, Pfizer Chief Executive Albert Bourla said the company doesn't plan to invest further in Russia as the war in Ukraine escalates.
The company will continue to make some medicines in Russia for that nation, according to CBS News.
Bourla said he doesn't expect much impact on sales and profits due to the pause on investment in Russia. Just a fraction of Pfizer's sales come from the country. Pfizer stock analysts expect total revenue to hit a record $106 billion this year as Covid vaccines and treatments drive massive growth.
Trade sanctions don't apply to lifesaving medicines. More consumer-facing tech brands like Apple, Microsoft and Alphabet have paused operations in Russia amid the war.
Pfizer stock neared its 50-day line on Friday, according to MarketSmith.com. Shares have a bullish Composite Rating of 97, which puts Pfizer stock in the leading 3% of all stocks in terms of fundamental and technical measures, according to IBD Digital. Still, Pfizer stock might not be a buy right now.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
