Despite FDA Approval, Arena Pharmaceuticals (ARNA) Triggers Short Sale Rule
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Seeing a dramatic "sell the news" reaction to yesterday's FDA approval of obesity drug Belviq, today's drop in Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) is so intense that the SEC Short Sale Rule 201 is in effect. Under the rule, the execution of short sale orders at or below the current National Best Bid is prohibited. Short selling is only permitted if the price of the security is above the current national best bid. The rule is triggered with a 10 percent decline.
The triggering of the short selling rule is shocking consider the label was relatively clean and there were questions about approval versus a CRL right up to the decision. That said, shares of ARNA were up 211 percent since and FDA panel backed the drug in May.
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The triggering of the short selling rule is shocking consider the label was relatively clean and there were questions about approval versus a CRL right up to the decision. That said, shares of ARNA were up 211 percent since and FDA panel backed the drug in May.
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