FBR Capital Starts Arena Pharma (ARNA) at Outperform, $6 PT

September 14, 2016 5:27 PM EDT
Get Alerts ARNA Hot Sheet
Price: $1.59 -1.24%

Rating Summary:
    5 Buy, 10 Hold, 5 Sell

Rating Trend: Up Up

Today's Overall Ratings:
    Up: 17 | Down: 27 | New: 7
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FBR Capital initiates coverage on Arena Pharma (NASDAQ: ARNA) with a Outperform rating and a price target of $6.00.

Analyst Christopher James commented, "We are initiating coverage of Arena Pharmaceuticals, Inc. (ARNA) with an Outperform rating and a 12-month price target of $6 per share. Historically, ARNA focused on obesity with its one approved drug, Belviq (lorcaserin). However, given the company’s expertise in discovery and drug development targeting G proteincoupled receptors (GPCRs), it is now primarily focused on advancing the pipeline with (1) etrasimod (APD334), a S1P receptor modulator for the potential treatment of ulcerative colitis (UC); (2) ralinepag, a prostacyclin receptor (PGI2) agonist for the potential treatment of pulmonary arterial hypertension (PAH); and (3) APD371, a cannabinoid receptor 2 (CB2) agonist in development for GI pain associated with Crohn's disease. While Belviq has had a disappointing launch, in our view, with sales of only $4.3 million in 2Q16 after 12 quarters, we think shares of ARNA will outperform under new management with expertise in small molecule drug discovery."

For an analyst ratings summary and ratings history on Arena Pharma click here. For more ratings news on Arena Pharma click here.

Shares of Arena Pharma closed at $1.50 yesterday.

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