Arena Pharma (ARNA) Posts Modest BELVIQ Sales, BMO Capital Notes

BMO Capital analyst Jim Birchenough, M.D. reiterated a Market Perform rating on Arena Pharma (NASDAQ: ARNA) following a Q1 net loss of $0.12 versus the consensus of a $0.10 loss, and an ending cash balance of $256.5 million.

The analyst also highlights revenues were $6.8 million, including $2.9 million in net product sales of weight loss drug BELVIQ, of which $2.7 million represented 31.5% of partner Eisai’s net sales. With the focus on the BELVIQ launch, ARNA reported that Eisai plans to further increase its BELVIQ US sales force to 600 representatives (from 400) by July 2014. ARNA also reported that approximately 77,000 BELVIQ prescriptions were filled in 1Q14 and that insurance coverage has surpassed 60%. A direct-to-consumer TV advertising campaign of BELVIQ was initiated in mid-April.

On the pipeline, a phase 2 smoking cessation study of BELVIQ is more than 50% enrolled, with data expected by YE14, and Eisai has completed enrollment in a BELVIQ/phentermine co-administration study, with data (mainly safety) also expected by YE14. Other pipeline highlights included two expected trial initiations in mid-2014, including a phase 1 MAD study of S1P1 agonist APD334, and a phase 2 study of APD811 in pulmonary arterial hypertension.

Birchenough comments, "While initiatives to stimulate BELVIQ growth are encouraging, we remain skeptical about prospects for meaningful acceleration absent a dramatic paradigm shift in the approach to obesity management. Pipeline developments could drive future value, but visibility on data remains limited."

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 $6.84 yesterday.

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