RBC Capital Slashes PT on Arena Pharma (ARNA) to $2 Following Q3 Report, Update

RBC Capital cuts its price target on Sector Perform-rated Arena Pharma (Nasdaq: ARNA) from $5 to $2 following Q3 results issued Tuesday night.

Analyst Simos Simeonidis commented, Arena reported 3Q15 earnings and provided additional color on the recently announced changes in strategic focus, following last month's retirement of long-term CEO Jack Lief. Belviq US sales continue to struggle (down 24% q/q) and Arena is reducing its US workforce by 35% to preserve cash, while it is discontinuing the Belviq+phentermine, and Belviq smoking RBC Capitalcessation programs, and tabling until later Belviq's EMA submission.

On the new price target, Simeonidis said, We have adjusted downwards our Belviq sales projections following another weak quarter of US sales. In addition, we have removed Belviq+phentermine sales from our model, which accounted for the majority of the Belviq franchise value in our ARNA NPV calculation.

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

You May Also Be Interested In

• Rentokil Initial (RTO) PT Lowered to $35 at Oppenheimer
• Alembic Pharmaceuticals (ALPM:IN) PT Raised to INR890 at HSBC
• Goldman Sachs First Take on Netflix (NFLX): 'We expect the market to have a muted reaction'