Arena Pharma Narrows Loss - Analyst Blog
06 May 2013 - 9:10PM
Zacks
Arena Pharmaceuticals
Inc.’s (ARNA) 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.
Quarterly
Update
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 agreements.
During the reported quarter, the
company received a $0.5 million milestone payment from
Eisai Co. Ltd (ESALY) 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.
Other
Developments
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 scheduling.
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 year.
Currently, Arena Pharma carries a
Zacks Rank #3 (Hold). Comparatively other biopharma stocks like
Incyte Corporation (INCY) and Medivation
Inc. (MDVN) look better positioned carrying a Zacks Rank
#1 (Strong Buy) and Zacks Rank #2 (Buy), respectively.
ARENA PHARMA (ARNA): Free Stock Analysis Report
EISAI CO LTD (ESALY): Get Free Report
INCYTE CORP (INCY): Free Stock Analysis Report
MEDIVATION INC (MDVN): Free Stock Analysis Report
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