Arena Pharmaceuticals (ARNA) Stock Gains as FDA Approves Weight-Loss Drug
NEW YORK (TheStreet) -- Shares of Arena Pharmaceuticals (ARNA) - Get Report are surging 4.12% to $1.77 in early-afternoon trading after announcing that the FDA has approved its New Drug Application (NDA) for BELVIX XR CIV extended release 20 mg tablets.
The weight-loss drug was made with Tokyo-based pharmaceutical company Eisai (ESALY), and the company expects to start selling it this fall. Arena said it would receive a $10 million milestone payment in connection with the FDA approval.
"We are pleased that once-daily BELVIQ XR has been approved by the FDA and will provide patients another option for weight loss," Amit Munshi, Arena's CEO, said in a statement. "The approval of this new formulation is another example of Arena's success in supporting our collaborators."
The drug is a 20 mg once-daily extended release formulation that may help patients lose weight.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate ARENA PHARMACEUTICALS INC as a Sell with a ratings score of D-. This is driven by multiple weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, generally disappointing historical performance in the stock itself and generally high debt management risk.
You can view the full analysis from the report here: ARNA
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