Biotech Stock Mailbag: Fans Rally 'Round Arena
The Biotech Mailbag is open.
My column on Arena Pharmaceuticals (ARNA) and the looming release of phase III data on it's obesity drug lorcaserin seemed to hit a nerve with some die-hard Arena fans. Several people emailed to say I was too bearish and that I should not have quoted Canaccord Adams' analyst Adam Cutler, who downgraded the stock recently.
The flurry of Arena-focused email included (naturally) the tired claim that I was trying to drive down the Arena's stock price purposely at the bidding of my hedge fund overlords.
I stand by the column. It was a realistic look at the challenges Arena faces. Obesity drug development is fraught with risk, and the current drugs in development -- Arena's lorcaserin or the competing drugs from Vivus (VVUS) and Orexigen Therapeutics (OREX) -- haven't exactly inspired much confidence yet.
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