Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) shares are shooting up 35% faster than Jack’s magic bean sparking right into a giant beanstalk. The reason? The drug maker announced encouraging results from its Phase 2 trial of S1P receptor modulator etrasimod in Ulcerative Colitis (UC). High dose etrasimod had a clinically meaningful and statistically significant impact on a variety of measures, including clinical remission.
“The results of this Phase 2 trial are impressive and demonstrate statistically significant efficacy of orally administered etrasimod, including clinically meaningful improvement in remission, as well as endoscopic improvement in what has been historically referred to as mucosal healing,” said William Sandborn, M.D., Professor of Medicine and Chief, Division of Gastroenterology and Director, University of California San Diego Inflammatory Bowel Disease Center. “Despite recent advances in treatment options, there remains a significant unmet need for new oral therapies for ulcerative colitis. I look forward to etrasimod advancing into a Phase 3 program.”
Preston Klassen, M.D., M.H.S., Executive Vice President, Research and Development and Chief Medical Officer of Arena Pharmaceuticals, said, “We believe these data support proceeding to a Phase 3 program in ulcerative colitis and continuing efforts to understand the broad potential utility of etrasimod in other immune and inflammatory diseases with significant unmet needs. Along with the positive Phase 2 results for ralinepag reported last year, this important milestone for the Company further amplifies our conviction in Arena’s internally discovered and developed compounds and their potential to be best-in-class.”
Wall Street loves Arena stock, considering all voices are betting on this biotech firm. TipRanks analytics exhibit ARNA as a Strong Buy. Based on 6 analysts polled in the last 3 months, 6 rate a Buy on ARNA stock. The 12-month average price target stands at $58.50, marking a 40.5% upside from where the stock is currently trading.
Arena is focused on developing novel, small molecule drugs with optimized receptor pharmacology and pharmacokinetics designed to deliver broad clinical utility across several therapeutic areas. Arena’s proprietary pipeline includes potentially first- or best-in-class programs.