Arena Pharmaceutical’s (NASDAQ:ARNA) Weight-Loss Pill Wins FDA Approval – ARNA, VVUS, OREX, GSK

  on Jun 28,2012 Posted in Business News ,Finance
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Arena Pharmaceuticals, Inc’s (NASDAQ:ARNA) weight- loss pill has been approved. The pill is the first cleared in the United States in 13 years. With the possible breakthroughs in the treatment of obesity, the approval may encourage other major drug makers to enter the marketplace.

A study predicting that 42% of the United States population would be obese by 2030 has boosted interest in finding therapies that can get approval. It is however, the long-term cardiovascular side effects that have raised concerns from regulators.

Corporations will be watching sales of Arena’s Belviq and VIVUS, Inc’s (NASDAQ:VVUS) Qnexa, in line for a Food and Drug Administration decision by July 17, as a gauge for possible pacts.

Let’s have a quick look at the market performance of the key rivals. Shares of VIVUS, Inc. (NASDAQ:VVUS) surged +7.35% to settle at $28.33, Orexigen Therapeutics, Inc. (NASDAQ:OREX) moved up +20.29% to finish at $4.92 while GlaxoSmithKline plc (ADR) (NYSE:GSK) plunged -1.17% to end the trading session at $45.54.

The previous session traded volume of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) was 90.05 million shares compared with its average volume of 25.08 million shares. Shares of the company traded within the price range of $1.23 – $13.50 during the earlier traded session.

Arena Pharmaceuticals price to sales ratio was 189.31 compared with the 97.22 and 2.66 of Orexigen Therapeutics and GlaxoSmithKline respectively. The P/E ratio of a stock is a measure of the price paid for a share relative to the annual earnings per share. The stock offers -45.61% as returns on assets while return on equity was -160.96%.

Last month, Arena Pharmaceuticals stock price volatility remained 12.03% while stock price volatility for the week was 29.87%. Arena Pharmaceuticals has 182.50 million shares outstanding in its share capital and 181.28 million shares have been floated in market.

The company generated revenue of 10.98 million in the previous twelve months and had -$98.73 million in earnings. The stock reported a net profit margin of -873.19% whereas operating margin was -718.27%.



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