What Should You Expect From Arena Pharmaceuticals, Inc. (ARNA) and VIVUS, Inc. (VVUS)?

On the other hand, prescription figures for Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)’s Belviq are increasing at a good pace. According to IMS, the fourth week prescriptions for Belviq stood at just over 2,200. However, the prescription figures are still very low and the sales for the quarter may not meet expectations. Belviq has an advantage over its closest competitor. The drug has a safer profile and there are no restrictions on the marketing. Furthermore, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has an experienced partner in Eisai to market the drug. Overall, the response to the drug has been good.

However, the biggest test for the drug will come once it has gone through the first batches of patients. One or two quarters are not enough to judge these drugs, in my opinion. These drugs should be judged on the performance of at least a year of sales. I expect Belviq to do well as the drug has a safer profile, which gives physicians more confidence.

Summary

Anti-obesity drugs manufacturing is an attractive segment of the market. There is real need present in the market and these two companies have an excellent opportunity to capture a large chunk of the market before other players decide to enter the market. However, the long-term success of these companies will depend heavily on the long-term performance of the drugs. If the drugs are able to maintain early sales, then these companies are set to have excellent future. Otherwise, their fate might not be different from the previous anti-obesity drug manufacturers.

Nonetheless, these stocks remain attractive short-term trading candidates due to the high levels of volatility.

The article What Should You Expect From Arena and Vivus? originally appeared on Fool.com and is written by Ishtiaq Ahmed.

Ishtiaq Ahmed has no position in any stocks mentioned. The Motley Fool recommends Express Scripts. The Motley Fool owns shares of Express Scripts. Ishtiaq is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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