Barclays Downgrades Arena Pharmaceuticals (ARNA) to Underweight; EMDAC Risk-reward Unfavorable

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Barclays downgrades Arena Pharmaceuticals (Nasdaq: ARNA) from Equalweight to Underweight. PT lowered from $4 to $3.

Barclays analyst says, "We are downgrading our rating on ARNA following review of Meridia briefing documents ahead of lorcaserin review on Sept 16. With FDA release of briefing documents for lorcaserin expected tomorrow morning we believe that review of briefing documents for competing weight loss drug Meridia raises several questions regarding stringency of CV risk assessment for obesity drugs, adequacy of label warnings and market potential for lorcaserin specifically."

"Following review of Meridia briefing documents we believe that likelihood of lorcaserin approval is modestly lower and that likelihood of a blockbuster weight loss drug with 3% placebo adjusted should be considered remote."

Shares are being dismantled today, down $2.42 (-35.33%) to $4.43.

To see all the upgrades/downgrades on shares of ARNA, visit our Analyst Ratings page.

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