FBR Reiterates Buy On Arena Pharmaceuticals, Inc. (ARNA) Following 4Q16 Update
In a research report published Wednesday, FBR analyst Rahul Jasuja reiterated an Outperform rating on shares of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) with a price target of $6.00, following the company’s fourth-quarter results and update on its pipeline.
Jasuja noted, “Ralinepag, the oral prostacyclin receptor (IP) agonist for pulmonary arterial hypertension (PAH), has completed Phase II trial enrollment, and data are expected in mid 2017. Etrasimod, the selective sphingosine-1-phosphate (S1P) receptor modulator for ulcerative colitis (UC), is in Phase II, and data readout is expected later in 2017. Additional Phase II trials have been initiated with etrasimod in autoimmune indications of high unmet need that may provide rapid proof of concept. These diseases include dermatological extraintestinal manifestations in patients with inflammatory bowel disease (IBD), pyoderma gangrenosum, and primary biliary cholangitis (to be initiated). Phase II plans are ongoing for APD371, the cannabinoid receptor-2 agonist for gastrointestinal pain associated with Crohn’s Disease. In February, ARNA’s partner, Axovant, for nelotanserin for Lewy body dementia reported on early data in a Phase II trial. And finally, in December 2016, Belviq global commercial rights were licensed to Eisai.”
According to TipRanks, analyst Rahul Jasuja has a yearly average return of -9.6% and a 36% success rate. Jasuja has a -0.7% average return when recommending ARNA, and is ranked #4197 out of 4539 analysts.
Out of the three analysts polled in the past 12 months, one rates Arena stock a Buy, while two rate the stock a Hold. With a return potential of 280%, the stock’s consensus target price stands at $6.00.