This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Vivus, Arena Obesity Drugs Will Be Approved, Investors Say

Updates with current stock prices.

BOSTON (TheStreet) --Both Vivus (VVUS) and Arena Pharmaceuticals (ARNA) are expected to receive final approval for their rival obesity drugs although confidence in the former is significantly higher, according investors who submitted entries to TheStreet's latest FDA Drug Approval Contest.

Nearly 77% of investors predict FDA will approve Vivus' Qnexa on or before July 17 -- an overwhelming margin compared to the 19% of investors predicting rejection. Another 4% of investors believe FDA will delay the Qnexa decision for a second time.

By comparison, 46% of the same investors are forecasting FDA approval of Arena's lorcaserin on June 27. Those who believe FDA will reject lorcaserin or delay the decision are split almost evenly -- 26% vs. 28%.

Vivus shares were up 5% to $26.93 while Arena shares rose 11% to $9.31 in Monday afternoon trading.

TheStreet asked investors to predict the outcome of five, key FDA regulatory events taking place in June and July. The response to the contest set a record with 134 entries, more than double the submissions received for TheStreet's prior FDA Drug Approval Contest.

If the "wisdom of crowds" theory is correct, the contest should prove to be a relatively accurate barometer for predicting the FDA approval decisions. For the record, investors participating in the last contest were correct 60% of the time -- a respectable measure of accuracy. That contest, held earlier this year, encompassed half as many entries but three times as many drug approval events as the current contest.

Amarin (AMRN) also fares well in the current contest, with 76% of investors predicting FDA approval of the company's prescription fish-oil pill on July 26. A scant 5% of investors believe Amarin's AMR101 will be rejected, while 19% says FDA will delay a decision.

Investors are split on the future of Onyx Pharmaceuticals' (ONXX) multiple myeloma drug carfilzomib. While a large majority (77%) believes this Wednesday's FDA advisory panel will result with in a positive recommendation backing carfilzomib's approval, only 35% believe FDA will follow on July 27 and actually grant approval.

A majority of investors (55%) participating in the contest believe FDA will reject carfilzomib.

[Special note: Contestants submitted their predictions before FDA released carfilzomib briefing documents Monday morning. In its review, FDA raised serious concerns about the carfilzomib safety and questioned the overall risk-benefit of the drug for multiple myeloma patients.]

--Written by Adam Feuerstein in Boston.



>To contact the writer of this article, click here: Adam Feuerstein.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,457.28 -106.02 -0.64%
S&P 500 1,919.55 -11.12 -0.58%
NASDAQ 4,332.7250 -37.0480 -0.85%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs