Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Arena Pharmaceuticals, Inc. (ARNA): Are Investors Worried?

Page 1 of 2

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) issued a press release pointing out that its marketing partner Eisai had started direct-to-consumer advertising for their obesity drug Belviq, including a full-page advertisement in O, The Oprah Magazine.

You read that right: a press release about an advertisement.

It’s a sure sign that Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) knows its investors are a little worried about the launch. Management needn’t look further than Arena’s stock price to see.

ARNA Chart

ARNA data by YCharts


I’m not surprised by the slow launch, but Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)’s share price decline is surprising. Investors must have had a higher expectation of the launch than I did. It seemed pretty obvious after VIVUS, Inc. (NASDAQ:VVUS)‘s slow start launching its obesity drug, Qsymia, that Belviq wouldn’t be an instant blockbuster.

Sure, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) had a few things going for it. Belviq was available in drugstores on day one of the launch; Qsymia was initially available only through mail-order pharmacies. Belviq has fairly mild side effects, while there’s a risk of birth defects with Qsymia, which is governed by a REMS. And Arena has a Big Pharma marketing partner, while VIVUS, Inc. (NASDAQ:VVUS) launched alone.

Unfortunately, none of those issues are the main reason Qsymia’s launch was so slow. The bigger issue is that doctors are fundamentally uninterested in treating obesity with drugs and patients don’t want to pay for the drugs out of pocket.

Both issues are fixable. Doctors will become less worried about the risk-benefit of using drugs the longer they’re on the market, and Eisai and VIVUS, Inc. (NASDAQ:VVUS) are making progress getting the drugs covered by insurance, although there’s still a long ways to go.

Page 1 of 2

Biotech Stock Alert - 20% Guaranteed Return in One Year

Hedge Funds and Insiders Are Piling Into

One of 2015's best hedge funds and two insiders snapped up shares of this medical device stock recently. We believe its transformative and disruptive device will storm the $3+ billion market and help it achieve 500%-1000% gains in 3 years.

Get your FREE REPORT and the details of our 20% return guarantee today.

Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.
Loading Comments...

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 102% in 3 years!! Wondering How?

Download a complete edition of our newsletter for free!