This Day On The Street
Continue to site right-arrow
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
TheStreet Open House

Obesity Stocks Focus on Approvals As Arena Pharmaceuticals Goes Global

Chris Lau, Kapitall: Obesity drug makers still look volatile, but some could go higher this year.

Since bottoming at $4.05 in November 2013, shares of biotech obesity stock Arena ( ARNA ) rose steadily. Moderating expectations could keep the stock in a trading range for a while, but there are a number of positive developments that suggest Arena could move higher than its biotech competitors this year.

Click on the interactive chart below to price data for these biotech stocks over time.

Worldwide advertising

Arena’s commercialization partner, Eisai, said that it would market the obesity stock’s diet drug BELVIQ in most markets worldwide. Arena is receiving $60 million from its drug partner to aid in marketing efforts.

Read more from Kapitall: 5 Natural Food Stocks With Dividends

With billions of dollars more attached to sales results, both partners will be motivated to support effective advertising efforts to drive better profits.

Approvals and availability

Arena withdrew its Marketing Authorization Application for BELVIQ in the EU last year due to safety concerns from by the Committee for Medicinal Products for Human Use. Now that Arena shares are trading lower, the market may not be pricing in much chance of an approval in this region.

Arena also filed for approval in Switzerland, Mexico and Canada. Progress in the approval for its application will be positive for Arena shareholders.

But competitor Orexigen Therapeutics (OREX) is now seeking FDA approval in the US for its own anti-obesity drug, Contrave. A decision is expected by June of this year.

And pharmaceutical giant GlaxoSmithKline plc (GSK) offers Alli, the only over the counter drug intended to treat obesity in the US and the UK.

Arena return: 1 year

Click on the interactive chart below to compare annual returns over time.

Patience required

Biotech stocks like Arena are not suitable investments for everyone. Operational risks exist as drugs like BELVIQ seek approval and are marketed and distributed worldwide.

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
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

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
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

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