Arena Pharmaceuticals Inc. is selling its drug manufacturing facility in Zofingen, Switzerland, to Siegfried Holding AG for CHF 4 million in cash.
The facility produces Arena Pharmaceuticals' weight-loss drug Belviq, which was the primary driver of the company's 2016 revenues of $124 million.
Arena has been posting a GAAP loss since at least 2012, according to S&P Capital IQ data.
The transaction includes certain liabilities as well as all related business contracts and employees.
Further, if Siegfried sells the assets to other buyers before Dec. 31, Arena Pharmaceuticals will receive a part of such deal's consideration.
The closing of the divestiture is expected to occur March 31, subject to customary closing conditions.
