Back to top

Analyst Blog

Arena Pharmaceuticals Inc. (ARNA - Snapshot Report) recently announced that the US Drug Enforcement Administration (DEA) has assigned its obesity drug Belviq into Schedule IV of the Controlled Substances Act. The company expects to make Belviq available in the US in a month.

Upon commercialization of Belviq, Arena Pharma will receive $65 million of milestone payment from its partner, Eisai. Eisai will undertake commercialization responsibilities of Belviq in the US.

We remind investors that on Jun 27, 2012, Belviq was approved by the US Food and Drug Administration (FDA) as an adjunct to a healthy diet (low on calories) and increased physical activity for chronic weight management in obese or overweight people.

Meanwhile, the company decided to withdraw its Marketing Authorization Application (MAA) for Belviq in the EU. The Committee for Medicinal Products for Human Use (CHMP), European Medicines Agency’s (EMA) advisory body, believes that the results of nonclinical studies were not sufficient for the drug’s approval. The company intends to submit the application at a later date.

Arena Pharma has filed regulatory applications for Belviq in Switzerland. Moreover, the company expects to file regulatory filings for the drug in Canada, Brazil and South Korea in near-term.

We remind investors that apart from Belviq, another weight-loss drug, VIVUS Inc.’s (VVUS - Analyst Report) Qsymia, also received approval in the US last year. Orexigen Therapeutics, Inc. (OREX - Analyst Report) is also developing a candidate, Contrave, targeting the lucrative obesity market.

Currently, Arena Pharma carries a Zacks Rank #3 (Hold). Comparatively other biopharma stocks like XOMA Corporation (XOMA - Snapshot Report) look better positioned carrying a Zacks Rank #1 (Strong Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
SYNAPTICS I… SYNA 78.11 +8.14%
CENTURY ALU… CENX 19.88 +5.74%
GREEN PLAIN… GPRE 39.41 +5.12%
PILGRIM'S P… PPC 28.82 +3.08%
THE PANTRY… PTRY 18.41 +2.79%