Canaccord Genuity Morning Coffee on Arena Pharma. (ARNA): Does This Mean I Can Keep Eating Super-Sized Double Big Mac Meals?

June 28, 2012 10:21 AM EDT
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Price: $1.39 +2.21%

Rating Summary:
    5 Buy, 10 Hold, 5 Sell

Rating Trend: Up Up

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    Up: 29 | Down: 29 | New: 23
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Canaccord Genuity Morning Coffee on Arena Pharma. (Nasdaq: ARNA): Does this mean I can keep eating Super-Sized Double Big Mac meals?

Shares of Arena Pharmaceuticals gained almost 30% after the company announced that the U.S. Food and Drug Administration (FDA) have approved the company’s anti-obesity drug Lorcaserin. The FDA directed a study which evaluated 604 obese and overweight participants with type 2 diabetes in a doubleblind placebo-controlled randomized trial over a one-year treatment period. Although all participants received systematic lifestyle change counseling, those on the medication lost 4.5 – 5.0% of their initial bodyweight compared to a loss of 1.5% by patients on the inactive placebo. Jack Lief, Arena's President and Chief Executive Officer noted, "The FDA approval of our drug is an important development for patients who struggle with obesity or are overweight with co-morbidities and need help with chronic weight management beyond diet and exercise." The approval of Lorcaserin marks the first time in over 10 years that the FDA has approved an anti-obesity drug. Wall Street analyst expects Lorcaserin to have annual sales of $1.4 billion by 2020. Shares of Vivus (Nasdaq: VVUS) and Orexigen (Nasdaq: OREX) also popped on the news, as both companies are also developing antiobesity drugs.

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