Biotech Stock Mailbag: Fans Rally 'Round Arena
The Biotech Mailbag is open.
My column on Arena Pharmaceuticals (ARNA - Get Report) 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 - Get Report) and Orexigen Therapeutics (OREX - Get Report) -- haven't exactly inspired much confidence yet.
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