This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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

Stocks in this article: ARNAGSKOREX

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

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 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

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