Arris to Acquire Sequana for $166 Million

Arris Pharmaceuticals Corp., a South San Francisco-based drug research and development firm, said it will acquire the genetic research company Sequana Therapeutics Inc. in a stock swap worth $166 million. After the news, shares of La Jolla-based Sequana jumped $2.69 to close at $13.94, while Arris lost 88 cents to close at $11.13, both on Nasdaq. Under terms of the agreement, Arris would issue 1.35 shares for each share of Sequana. “By merging the two companies, we believe we have created the first biotechnology company that has capabilities extending from gene to drug,” said Arris President and Chief Executive John Walker. “With this acquisition, we will be able to capture the full value of drug discovery, from novel therapeutic targets to novel drugs.” The combined company will be named AxyS Pharmaceuticals Inc. The deal is expected to be completed early next year.