In a research report issued Tuesday, Needham analyst Alan Carr reiterated a Hold rating on Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), after the drug maker reported third-quarter results and hosted a conference call yesterday to provide a corporate update. Arena shares are currently trading at $1.56, up $0.09 or 6%.
Carr noted, “The new management team executed a broad restructuring plan and shift in strategy away from Belviq towards clinical pipeline. Enrollment continues in Phase 2 trials of ralinepag (Pulmonary Arterial Hypertension) and etrasimod (Ulcerative Colitis). Top-line results from former are expected mid-2017 and latter in 2H17. Mgmt guided for initiation of a Phase 2 trial of APD371 in pain associated with Crohn’s Disease in early 2017. We maintain HOLD, awaiting outcome of proof of concept Phase 2 trials.”
“Arena ended 3Q16 w/$101.6M in cash, down from $122.0M in 2Q16. We believe this is sufficient into 2H17,” the analyst added.
As usual, we like to include the analyst’s trackrecord when reporting on new analyst notes. According to TipRanks, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Alan Carr has a yearly average return of 3.3% and a 41% success rate. Carr is ranked #736 out of 4181 analysts.
Out of the 8 analysts polled by TipRanks, 5 rate Arena Pharmaceuticals stock a Hold, while 3 rate the stock a Buy. With a return potential of 140%, the stock’s consensus target price stands at $3.67.