Celgene/Receptos Deal Seen as a Positive for Arena Pharma (ARNA), Piper Jaffray Says

Piper Jaffray analyst Edward Tenthoff said Celgene's (NASDAQ: CELG) acquisition of Receptos (NASDAQ: RCPT) is a positive for Arena Pharma (NASDAQ: ARNA). The firm reiterated an Overweight rating and price target of $4.50.

Tenthoff commented, "Receptos is developing ozanimod, a selective S1P1/P5 receptor agonist, currently in Phase III trials in relapsing multiple sclerosis and ulcerative colitis (UC). Arena is developing S1P1 agonist APD334. In a Phase Ib study, APD334 was well tolerated and showed dose-dependent decreases in circulating lymphocyte counts. Arena will initiate Phase II studies in UC and Crohn's disease this year. While the primary driver remains Belviq sales, Arena's pipeline is beginning to garner greater investor attention and valuation in our view. Arena ended 1Q:15 with $241 million in cash and equivalents."

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

Shares of Arena Pharma closed at $4.47 yesterday.

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