Arena (ARNA) Ramps as PDUFA Delay May Be Avoided

June 19, 2012 11:37 AM EDT
With just eight more days until Arena Pharmaceuticals' (NASDAQ: ARNA) FDA PDUFA date (06/27) for potential blockbuster obesity drug Lorcaserin, investors may be feeling more confident that a 3-6 month delay won't come.

Looking at the past announcement from rival Vivus, Inc. (NASDAQ: VVUS) of a three month PDUFA delay for its Qnexa, it should be noted that the delay announcement came eight days ahead of the original scheduled PDUFA date.

This could suggest that if we don't get a delay announcement from Arena today, it won't come at all.

With or without a delay, most expected the FDA will follow the advice of their panel and back Lorcaserin. However, if the company doesn't get the delay it may be able to gain a 'first to market' advantage.

Shares of ARNA last traded at $10.17, up 8.4 percent.

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