Arena Pharmaceuticals Inc.
) loss (excluding special items) of 10 cents per share in the
first quarter of 2013 was narrower than the year-ago loss of 15
cents per share. The Zacks Consensus Estimate hinted at earnings
of 11 cents per share.
Arena Pharma recorded first quarter revenues of $2.4 million,
up 8.4% from the year-ago period. The company's first quarter
revenues were well below the Zacks Consensus Estimate of $50
million. Arena Pharma's revenues during the quarter comprised of
revenues from manufacturing services and collaborative
During the reported quarter, the company received a $0.5
million milestone payment from
Eisai Co. Ltd
) for the submission of Marketing Authorization Application (MAA)
for Belviq in Mexico. Arena Pharma is also eligible to receive
payments based on Eisai's net sales of Belviq.
Research and development expenses were down 3.2% to $14
million. However, Arena Pharma's general and administrative
expenses increased 14.1% to $7.3 million during the reported
quarter. Higher salaries, patent fees and auditing fees led to
the increase in general and administrative expenses.
We remind investors that on Jun 27, 2012, Belviq was approved
by the US Food and Drug Administration (FDA) as an adjunct to a
healthy diet (low on calories) and increased physical activity
for chronic weight management in obese or overweight.
The US Drug Enforcement Administration (DEA) had earlier
issued a notice proposing that Belviq should be placed in
Schedule IV of the Controlled Substances Act. The DEA is
currently conducting the final scheduling of Belviq. The drug is
expected to be available in the US following the completion of
Meanwhile, the company decided to withdraw its MAA for Belviq
in the EU. The Committee for Medicinal Products for Human Use
(CHMP), European Medicines Agency's (EMA) advisory body, believes
that the results of nonclinical studies were not sufficient for
the drug's approval. The company intends to submit the
application at a later date.
Apart from the US and the EU, Arena Pharma has also filed
regulatory applications for Belviq in Switzerland. Moreover, the
company expects to file regulatory filings for the drug in
Canada, Brazil and South Korea as well by the end of this
Currently, Arena Pharma carries a Zacks Rank #3 (Hold).
Comparatively other biopharma stocks like
) look better positioned carrying a Zacks Rank #1 (Strong Buy)
and Zacks Rank #2 (Buy), respectively.
ARENA PHARMA (ARNA): Free Stock Analysis
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