United Therapeutics buys Arena's hypertension drug ralinepag in deal worth $1.2 billion

US pharma firm United Therapeutics has agreed to by Arena Pharmaceuticals experimental pulmonary arterial hypertension (PAH) drug ralinepag in a deal worth up to more than $1.2 billion.

United will pay $800 million upfront and will be eligible to pay Arena $400 million if milestones are met. The deal also includes low double-digit tiered royalties on annual net sales.

Ralinepag, a next-generation, oral, prostacyclin receptor agonist, also known as APD811, is currently in Phase III development for the treatment of PAH.

Last year, the drug achieved success in Phase II trials, with ralinepag demonstrating a significant absolute change from baseline in pulmonary vascular resistance compared to placebo.

Stocks in Arena soared on the announcement of the deal, as shares jumped by as much as 30%. Shares in United also gained ground settling at a price 6% higher than before the news came out.

Martine Rothblatt, CEO of United Therapeutics commented: "We are confident that after achieving FDA approval via at least one of its several different potential regulatory pathways to success, this product will help greater than 10 000 patients annually from the 2020s and well into the 2030s."

Arena CEO Amit Munshi said: "This transaction represents a significant milestone in the development of ralinepag and will strategically position Arena to aggressively advance our best-in-class pipeline, anchored by etrasimod and olorinab, with the focus and resources essential for long-term success."

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