Company Update (NASDAQ:ARNA): Arena Pharmaceuticals, Inc. Reports 3Q:16 Financial Results and Provides Corporate Update

ARNAArena Pharmaceuticals, Inc. (NASDAQ:ARNA) reported financial results for the third quarter endedSeptember 30, 2016, and provided a corporate update.

“This was a highly productive quarter for Arena.  We continue to make significant progress focusing the company on our unpartnered clinical programs and building a high performing product development organization. We have expanded our clinical development and management team to facilitate better execution in a time and cost effective manner,” said Amit Munshi, Arena’s President and CEO.  “We are enthusiastic about our strategy to focus on our clinical stage programs, with a goal of developing first- or best-in-class assets with our three proprietary compounds which includes evaluating ways to expand their indications. In support of our programs, we have initiated efforts to communicate to the scientific community through an active outreach and publication strategy.”

Publications Update

  • Etrasimod (APD334)
    • Presented data on etrasimod’s S1P receptor profile at the United European Gastroenterology Week (UEGW) Meeting on October 18, 2016.
    • Received acceptance of four poster presentations at the upcoming Advances in Inflammatory Bowel Diseases 2016 (AIBD) conference, which will be held on December 8-10, 2016.
      • Preclinical Safety Assessment of Etrasimod (APD334), an Oral Sphingosine-1-Phosphate Receptor (S1P) Modulator with a Unique Profile
      • The Sphingosine-1-Phosphate Receptor (S1P) Modulator Etrasimod (APD334) Demonstrates Limited Effects on Heart Rate in Preclinical Testing
      • Safety, Pharmacokinetics and Pharmacodynamics of Etrasimod (APD334), an Oral Selective S1P Receptor Modulator, after Dose-Escalation, in Healthy Volunteers
      • Etrasimod (APD334), a Potent, Selective, Oral S1P Receptor Modulator with Autoimmune Disease-Modifying Activity Exhibiting Favorable PK/PD Properties in Healthy Volunteers

Collaborations Update

  • Eisai, Ltd. and Eisai Inc.
    • On October 3, 2016, Eisai announced the availability of once daily BELVIQ XR® in the US.

Corporate Update

  • Vincent Aurentz was appointed as Executive Vice President and Chief Business Officer, effective August 15, 2016.
  • Beacon Discovery, a privately held drug discovery incubator, was formed as a means to unlock the value of Arena’s historical research platform. Beacon focuses on identifying and advancing molecules targeting G-Protein Coupled Receptors, or GCPRs.

Third Quarter 2016 Financial Results

  • Revenues totaled $19.2 million, including $3.3 million in net product sales of BELVIQ and $11.0 million in milestone payments earned from Eisai for BELVIQ
  • Research and development expenses totaled $17.5 million
  • General and administrative expenses totaled $8.6 million
  • Restructuring charges totaled $0.2 million
  • Net loss attributable to stockholders of Arena was $12.4 million or $0.05 per share
  • At September 30, 2016, cash and cash equivalents totaled $101.6 million and approximately 243 million shares of Arena common stock were outstanding (Original Source)

Shares of Arena Pharmaceuticals closed today at $1.47, up $0.08 or 5.76%. ARNA has a 1-year high of $2.68 and a 1-year low of $1.30. The stock’s 50-day moving average is $1.74 and its 200-day moving average is $1.70.

On the ratings front, ARNA has been the subject of a number of recent research reports. In a report issued on September 14, FBR analyst Christopher James initiated coverage with a Buy rating on ARNA and a price target of $6.00, which implies an upside of 320% from current levels. Separately, on August 10, Needham’s Alan Carr maintained a Hold rating on the stock.

According to, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Christopher James and Alan Carr have a yearly average loss of 26.0% and a return of 2.1%, respectively. James has a success rate of 20% and is ranked #4013 out of 4162 analysts, while Carr has a success rate of 38% and is ranked #976.

Arena Pharmaceuticals, Inc. is a biopharmaceutical company engages in the discovery, development, and commercialization of novel drugs that target G protien-coupled receptors. It offers a range of drugs for treatment in the field of cardiovascular, central nervous system, inflammatory, and metabolic diseases. 

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