Hot Biotech Stock on the Move

Posted by on Jul 28, 2010 | 2 comments

Shares of Arena Pharmaceuticals Inc. (NASDAQ: ARNA) are seeing huge activity in today’s trading. The stock touched a low of $5.91 today. At last check, it was down 0.16% to $6.19, with volume at 8.78 million in mid-day trading.

The Arena stock has a 52-week range of $2.70-$6.75. It is currently trading above its 50-day and 200-day moving averages.

Arena reported its first-quarter financial results on May 7. The company reported first-quarter net loss of $31.3 million, or $0.33 per share, compared with a net loss of $50.6 million, or $0.68 per share. The company saw a significant decline in its R&D expenses in the first quarter to $18.3 million. For the same period last year, the company’s R&D expenses were $42.6 million.

Since reporting the first-quarter financial results, the Arena stock has appreciated more than 100%. The stock has seen a huge rally, since the beginning of this month. It has jumped from $3.07 to the current level.

The rally came on the back of announcement made by the company on July 1 that Eisai Inc. will market the company’s lorcaserin for obesity and weight management in the U.S., following an pproval from the U.S. FDA under the terms of a marketing and supply agreement between Arena GmBH, which is Arena’s wholly owned subsidiary, and Eisai.

As per the marketing and supply agreement, Arena has given Eisai exclusive rights to commercialize lorcaserin in the U.S. As per the agreement, Arena will manufacture lorcaserin at its facility in Switzerland and sell the finished product to Eisai for marketing and distribution in the U.S. Under the terms of the agreement between the two companies, Arena will receive an upfront payment of $50 million from Eisai and up to  an additional $90 million, if some of the milestones are achieved.

This month’s rally has seen small corrections like the one today, following which the stock has rallied again. Year-to-date, Arena stock is up 74.08%. The stock has strong support at $5.51. It has faced some resistance at $6.41.

Analysts, currently, have a consensus recommendation of Outperform. The stock has 5 Buy, 3 Outperform, 7 Hold and 1 Underperform rating, at the moment.

Arena is a San Diego, California-based is a clinical stage biopharmaceutical company. The company is working in four major therapeutic areas; cardiovascular, central nervous system, inflammatory and metabolic diseases.

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About BeaconEquity.com

BeaconEquity.com is committed to producing the highest-quality insight and analysis of small-cap stocks, emerging technology stocks, hot penny stocks and helping investors make informed decisions. Our focus is primarily OTC stocks in the stock market today, which have traditionally been shunned by Wall Street. We have particular expertise with renewable energy stocks, biotech stocks, oil stocks, green energy stocks and internet stocks. There are many hot penny stock opportunities present in the OTC market everyday and we seek to exploit these hot stock gains for our members before the average daytrader is aware of them.

Beacon Equity Group Disclaimer

This newsletter is a paid advertisement and is neither an offer nor recommendation to buy or sell any security. We hold no investment licenses and are thus neither licensed nor qualified to provide investment advice. The content in this report or email is not provided to any individual with a view toward their individual circumstances. Beaconequity.com is a wholly-owned subsidiary of BlueWave Advisors.

While all information is believed to be reliable, it is not guaranteed by us to be accurate. Individuals should assume that all information contained in our newsletter is not trustworthy unless verified by their own independent research. Also, because events and circumstances frequently do not occur as expected, there will likely be differences between the any predictions and actual results. Always consult a real licensed investment professional before making any investment decision. Be extremely careful, investing in securities carries a high degree of risk; you may likely lose some or all of the investment.

  • http://www.lorcaserindietpill.com/ The Lorcaserin Diet Pill

    What I like about ARNA is that their diet pill Lorcaserin almost looks perfect. Although the weight loss is not as effective as Qnexa (which was denied) Its safety profile looks incredible.

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