Arena Pharma (ARNA) Misses Q4 EPS by 3c; Offers FY15 Outlook

Arena Pharma (NASDAQ: ARNA) reported Q4 EPS of ($0.15), $0.03 worse than the analyst estimate of ($0.12). Revenue for the quarter came in at $9.2 million versus the consensus estimate of $10.36 million.

2015 Financial Guidance

Arena expects the majority of its 2015 revenues will be payments from collaborators based on their net product sales of BELVIQ: Arena will receive 31.5% and 35% of Eisai's and Ildong's net product sales of BELVIQ, respectively. Arena is currently not able to predict the amount of these sales and, accordingly, is not providing guidance for its overall 2015 revenues at this time. A lesser amount of Arena's total 2015 revenues will consist of regulatory milestones (including the $3.0 million milestone achieved from the approval of BELVIQ in South Korea in February 2015), amortization of upfront payments from existing collaborations (expected to be approximately $8.0 million), development and patent reimbursements from Eisai (expected to be approximately $7.0 million), and toll manufacturing from Siegfried (expected to be approximately $1.0 million).

Arena expects full year 2015 research and development expenses of approximately $114.0 million to $122.0 million, including non-cash expenses of approximately $13.0 million and $6.0 million in development expenses reimbursed by Eisai (with such reimbursed expenses included in revenue). Arena also expects full year 2015 general and administrative expenses of approximately $33.0 million to $39.0 million, including non-cash expenses of approximately $9.0 million and approximately $1.0 million in patent expenses reimbursed by Eisai (and included in revenue). In addition, Arena expects to spend approximately $8.0 million to $9.0 million for capital expenditures, primarily related to its manufacturing facility in Switzerland. Arena may moderate its planned level of expenses based on its revenues and shared costs with collaborators.

For earnings history and earnings-related data on Arena Pharma (ARNA) click here.

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