Arena Pharma (ARNA) Tops Q3 EPS by 2c; Issues Corp., R&D, BELVIQ Updates

Arena Pharma (NASDAQ: ARNA) reported Q3 EPS of ($0.11), $0.02 better than the analyst estimate of ($0.13). Revenue for the quarter came in at $9.1 million versus the consensus estimate of $9.14 million.

Corporate Update

• Announced plans to improve efficiencies and reduce costs as it focuses on the advancement of its research and development priorities. As part of this initiative, Arena reduced its US workforce by approximately 80 employees or 35%, which is expected to reduce annualized cash expenditures for personnel by approximately $11.0 million. Arena plans to implement additional cost control measures to further reduce its expenditures, including reductions at its Swiss manufacturing facility, Arena Pharmaceuticals GmbH.

Research and Development Update

• Announced the initiation of a Phase 2 proof-of-concept clinical trial of APD334, an oral Sphingosine 1-Phosphate Subtype 1 receptor modulator for autoimmune diseases, being studied in this trial for the treatment of ulcerative colitis.
• Announced the initiation of a Phase 1b multiple-ascending dose clinical trial of APD371, a selective and potent agonist of the cannabinoid 2 receptor.
• Axovant Sciences Ltd. acquired all of Roivant Sciences Ltd.'s rights to nelotanserin, an inverse agonist of the serotonin 2A receptor internally discovered by Arena. Arena previously granted Roivant, Axovant's parent company, exclusive worldwide rights to develop and commercialize nelotanserin under a Development, Marketing and Supply Agreement. Axovant announced that it intends to initiate two Phase 2 clinical trials with nelotanserin in the first quarter of 2016, with the first trial in patients with either dementia with Lewy bodies, or Parkinson's disease dementia who suffer from visual hallucinations, and the second trial in dementia with Lewy bodies patients experiencing REM Behavior Disorder.

BELVIQ® (lorcaserin HCl) Update

• Eisai acknowledged difficulties in the US anti-obesity market and announced plans to focus on patients and physicians in certain areas of the US where there is insurance coverage and a need for treatment options.
• IMS Health estimates that approximately 157,000 prescriptions for BELVIQ were filled in the US in the third quarter of 2015, representing growth in total prescriptions of approximately 9.8% compared to the same quarter of last year and a decrease of 14.4% compared to the previous quarter.
• Ildong Pharmaceutical Co., Ltd., estimates that approximately 2.1 million tablets of BELVIQ were prescribed in South Korea in the third quarter of 2015, which equates to approximately 34,400 one-month prescriptions, representing growth in total prescriptions of approximately 18.6% compared to the previous quarter.
• Announced that the US Patent and Trademark Office granted Arena US Patent No. 9,169,213, entitled "Method of Weight Management," covering BELVIQ for chronic weight management. The patent is based on the discovery that achieving 5% weight loss with BELVIQ by Week 12 is a strong predictor of responses in weight loss at Week 52 of treatment.

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

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