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Needham Maintains Cautious View of Arena Pharma (ARNA)

May 11, 2012 10:49 AM EDT Send to a Friend
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Price: $4.77 -1.65%

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    4 Buy, 9 Hold, 5 Sell

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    Up: 17 | Down: 38 | New: 6
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Needham & Company is maintaining its cautious stance on Arena Pharma (NASDAQ: ARNA) despite FDA panel backing for lorcaserin.

The firm said they remain cautious in the long-term because of concerns around limited impact on weight loss, which was acknowledged by many members of the
AdCom.

"We believe the drug may not have a strong/durable impact in the market."

Despite this view, they do expect approval of the drug is now probable although the PDUFA date may be extended in order to review risk management options for the commercial setting.

Needham admits they overestimated FDA concern for carcinogenicity. "Both the FDA and the AdCom appear to accept that this risk is somewhat limited. They did not, however, fully accept Arena's explanation that a prolactin-mediated mechanism is the primary cause for tumors."

The firm maintained a Hold on the stock.

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 $3.66 yesterday.




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