Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) announced the formation of Beacon Discovery Inc. (“Beacon”), an independent, privately-held drug discovery incubator.
Beacon will focus on identifying and advancing molecules targeting G-Protein Coupled Receptors (GCPRs) from concept to clinic leveraging the strengths and capabilities developed over close to two decades at Arena. Beacon plans to engage global pharmaceutical partners to facilitate discovery and early stage development.
Arena will have certain rights to compounds developed by Beacon and will collaborate with Beacon in support of Arena’s proprietary pipeline programs as well as the Boehringer Ingelheim International GmbHcollaboration. Additionally, Arena will be entitled to certain rights to potential cash flows generated by Beacon in the future.
“The formation of Beacon underscores both our commitment to transitioning Arena from a historically research-oriented organization to a high-performing clinical development organization and our commitment to maximizing the value of our assets,” said Amit Munshi, CEO of Arena. “We believe that Beacon has the potential to unlock the value of Arena’s historical research platform for the long term benefit of patients and shareholders.”
Dominic P. Behan, Ph.D., D.Sc., Arena’s co-founder, will serve as Beacon’s Chief Executive Officer and transition from being Arena’s Chief Scientific Officer and a member of its Board of Directors to become the Chairman of Arena’s Scientific Advisory Board and a consultant.
“I am grateful for the work that Dominic has delivered in his time at Arena. As one of the co-founders of Arena, Dominic has significantly contributed to Arena’s success and we are pleased that he will continue to participate as Chairman of the Scientific Advisory Board,” said Dr. Tina Nova, Chairman of Arena’s Board of Directors. “Dominic’s knowledge of the clinical programs at Arena will be important as we continue to evolve our business focus.”
“I believe the core clinical assets at Arena have the potential to be first or best in class and look forward to supporting the Arena team in optimizing the value of these clinical programs as Chair of the Scientific Advisory Board,” said Dr. Behan. “At the same time, I am very pleased to have the opportunity to launch Beacon and continue to build on Arena’s historical research platform.” (Original Source)
Shares of Arena Pharmaceuticals are up nearly 2.5% to $1.60 in after-hours trading. ARNA has a 1-year high of $2.99 and a 1-year low of $1.30. The stock’s 50-day moving average is $1.66 and its 200-day moving average is $1.71.
On the ratings front, Arena has been the subject of a number of recent research reports. In a report issued on August 10, Needham analyst Alan Carr maintained a Hold rating on ARNA. Separately, on August 9, Jefferies Co.’s Eun Yang reiterated a Buy rating on the stock .
According to TipRanks.com, which ranks over 7,500 financial analysts and bloggers to gauge the performance of their past recommendations, Alan Carr and Eun Yang have a total average return of 11.2% and 1.5% respectively. Carr has a success rate of 48% and is ranked #199 out of 4129 analysts, while Yang has a success rate of 59% and is ranked #1285.
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.