HANetf : Pfizer acquisition of Arena Pharmaceuticals is another major endorsement for the Medical Cannabis sector
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Hector McNeil, co-Founder and co-CEO at HANetf
- Medical cannabis sector is enjoying strong growth and is increasingly being seen as a more mainstream Consumer and Healthcare category
- Prior to the announcement, approximately 12% of the holdings in the Medical Cannabis and Wellness UCITS ETF (CBDX) was invested in Arena Pharmaceuticals
The Medical Cannabis and Wellness UCITS ETF (CBDX) says today’s announcement from Pfizer (PFE) to acquire Arena Pharmaceuticals (ARNA) for $100 per share, almost double the closing price of the stock in the previous trading sessions, is just the latest case of big pharma becoming unafraid of touching cannabinoid based research. It is also another example of the huge growth potential for the medical cannabis sector and how it is becoming more mainstream.
Nawan Butt, Portfolio Manager of The Medical Cannabis and Wellness UCITS ETF, said: “The main driver of the acquisition is lead asset Etrasimod which is being developed for the treatment of ulcerative colitis and Crohn’s Disease, and currently in late-stage development. Arena Pharmaceuticals is also developing a cannabinoid type 2 receptor (CB2) antagonist as it paves the way in cannabinoid research with a focus on visceral pain associated with gastrointestinal disorders.
“This acquisition displays the interest big pharma is taking in the fast-evolving world of cannabinoids. We are encouraged by the acquisition as it provides more resources and a wider platform for pharmaceutical development of cannabinoids. Overall, this transaction is in line Pfizer’s long-term focus on innovative research and a great win for our investors.”
CBDX was the first ETF to give access to the medical cannabis space in Europe, and now has $32 million in AUM as of 12th December 2021. It provides access to companies active in the medical cannabis space that have been screened to ensure their legality for investment across Europe and the ETF can be bought in a single trade. When you trade ETFs your capital is at risk.
Source: ETFWorld.co.uk
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