This Day On The Street
Continue to site
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

Arena Expands Marketing Of Obesity Drug To Help Shrink Waistlines

Chris Lau, Kapitall: Arena and a partner will expand marketing efforts for a weight loss drug, but is there more room to grow?

Shares in Arena Pharmaceuticals (ARNA) soared after the company extended its agreement with its partner Eisai for the company's weight loss drug Belviq. Bearishness had continued to build in its shares with short float of around 26%. The stock recently hit a new low at $4.05. Should investors expect the 17% rally on November 8 to hold?

Losses narrow

Arena reported a loss of $0.08 per share, which beat consensus by $0.04 per share. Revenue was $3.6 million. In its quarterly report, Arena said it would double its sales force to 400 representatives by this December.

[Read more on Healthcare from Kapitall: Biotech Stocks Climb and Fall on Catalysts in 2013]

This will widen the reach to physicians in the US by 65,000. Advertising was also launched last quarter directly to the consumer. And marketing partner Eisai included a 15-day free trial voucher for Belviq.
  • 31.5% of product sales, or $1.7M, was recognized in Q3.
  • R&D expenses rose to a healthy $14.59 million, up from $11.6 million last year.
  • Cash also rose to $180.7 million, up from $156.09 million last year.

Expanded agreement

In return for $60 million upfront and an additional maximum $176.6 million in milestone payments, plus up to $1.56 billion in adjustment payments to Arena, Eisai will get worldwide commercialization rights. The rights would exclude South Korea, Taiwan, Australia, Israel, and New Zealand.

Competitor struggles

Vivus (VVUS), whose Qsymia obesity drug competes with Belviq, reported a weak quarter. The company lost $0.48 per share on revenue of $27.4 million. Qsymia sales totaled $6.4 million in the quarter. In response to the weak quarter, Vivus will cut its workforce by 20 employees (17%) to reduce expenses. The termination costs will be recognized next quarter and will be included in the up to $8 million costs.

Click on the interactive chart to see data over time. 


Arena continues to look to the long term. The company is increasing its sales force steadily, and taking its time to win acceptance from major players: physicians, consumers, and insurance companies. If successful, Belviq could be the top choice for obesity treatment in the US.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
AAPL $93.74 0.00%
FB $117.58 0.00%
GOOG $693.01 0.00%
TSLA $240.76 0.00%
YHOO $36.60 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs