Arena (ARNA) Higher as VIVUS (VVUS) Downgrade is Company-Specific, Not Industry Issue
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Arena Pharmaceutical (Nasdaq: ARNA) investors are cheering Jefferies downgrade on VIVUS (Nasdaq: VVUS) earlier. The firm cut VIVUS from Hold to Underperform, knocking its price target down by nearly half, from $31 to $16.
The call was made as Jefferies voiced concern about the potential of "physicians to prescribe generic topiramate and phentermine in lieu of Qsymia."
Arena, on the other hand, "has patents or patent applications that cover lorcaserin in the United States, Europe, Canada, Mexico, Brazil and many other jurisdictions that, if issued, in most cases would be capable of continuing into 2023 without taking into account any patent term extensions or other exclusivity Arena might obtain," according to a recent release. So, there's no danger of physicians prescribing generic lorcaserin, but if they somehow did, Arena would get money from that as well.
BELVIQ prescribing information here. Qsymia information here.
Shares of VIVUS are down over 8 percent on the session, with Arena up 3.2 percent.
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The call was made as Jefferies voiced concern about the potential of "physicians to prescribe generic topiramate and phentermine in lieu of Qsymia."
Arena, on the other hand, "has patents or patent applications that cover lorcaserin in the United States, Europe, Canada, Mexico, Brazil and many other jurisdictions that, if issued, in most cases would be capable of continuing into 2023 without taking into account any patent term extensions or other exclusivity Arena might obtain," according to a recent release. So, there's no danger of physicians prescribing generic lorcaserin, but if they somehow did, Arena would get money from that as well.
BELVIQ prescribing information here. Qsymia information here.
Shares of VIVUS are down over 8 percent on the session, with Arena up 3.2 percent.
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