Heart disease is the number one cause of death in the United States and is big business for those pharmaceuticals looking to address the problem.
On Monday, one biotech released data for a drug that if it hits the market could send its stock soaring more than 190%.
Arena Pharmaceuticals Inc. (ARNA) announced Monday that it had seen promising results from its Ph.2 ralinepag study in pulmonary arterial hypertension (PAH). The results surpassed the benchmark established by its competitor selexipag (marketed as Uptravi), which is owned by Johnson & Johnson Inc. (JNJ) (acquired via its Actelion Ltd. acquisition) and hit the market in 2015.
The results led Joseph P. Schwartz or Leerink Partners to increase his price target to $53 per share from $47.
Arena Shares were up about 40% in premarket trading to $25.75 after closing at $18.39 on Monday.
"Today's topline data builds upon strong favorable, albeit in vitro, data which effectively re-positions Arena as a biotechnology company driven by proprietary pipeline rather than the long-standing image of a weight-loss drug company," Schwartz wrote in a note Tuesday morning. "On the heels of today's ralinepag data, we believe investors will begin to assign greater value to the company's proprietary pipeline - etrasimod and APD371 - that could present further upside in not only mass-mkt. indications like ulcerative colitis (UC) and pain, but also in the rare manifestations including pyoderma gangrenosum (PG) and extraintestinal manifestations (EIM)."
The firm said that it had also increased the probability that ralinepag will make it to market for the treatment of pulmonary arterial hypertension to 50% from 30%. The firm reiterated its outperform rating on Arena.