Benzinga | Jul 28, 2021 06:59AM EDT

Arena Pharma In-Licenses Aristea's CXCR2 Antagonist For Immune-Mediated Inflammatory Diseases

* Arena Pharmaceuticals Inc (NASDAQ:ARNA) and Aristea Therapeutics Inc have collaborated to develop RIST4721 for palmoplantar pustulosis (PPP) and other neutrophil-mediated diseases.

* RIST4721 is an oral CXCR2 antagonist being developed by Aristea.

* Under the terms of the agreement, Arena will pay upfront $60 million to Aristea and make a $10 million equity investment in Aristea's Series B financing.

* In return, Aristea has granted Arena an exclusive option to acquire Aristea, including rights to all CXCR2 programs, upon completing the Phase 2b study of RIST4721 in PPP.

* The agreement also provides a framework during the option period for the companies to jointly explore the development of other neutrophil-mediated diseases, including hidradenitis suppurativa (HS) and inflammatory bowel disease (IBD), potentially generating multiple data readouts during the option period.

* Price Action: ARNA shares closed at $61.32 on Tuesday.