Arena Pharmaceuticals, Inc. reported loss of 9 cents per share in the first quarter of 2017, same as in the year-ago period but wider than the Zacks Consensus Estimate of a loss of 8 cents.
Arena’s shares are down 4.65% in after-market trading since its earnings announcement. Moreover, the company’s shares have underperformed the Zacks classified Medical-Biomed/Genetics industry so far this year. Its shares lost 9.2% while the industry registered an increase of 2%.
Total revenue in the quarter was $6.6 million, down 32.7% from the year-ago quarter. Revenues included $2.7 million in net product sales of Belviq, $1.5 million in manufacturing support payments from Japanese pharma company Eisai and $1.1 million in the form of upfront payments from collaborations with Boehringer Ingelheim and Axovant Sciences Ltd. (AXON - Free Report) .
Belviq is the only approved product in Arena’s portfolio. It was launched in Sep 2016 and is approved for chronic weight management in adult patients.
Quarter in Detail
During the first quarter of 2017, Belviq sales declined to $2.7 million from $3.5 million a year ago.
Belviq, which has been in the U.S. market since Jun 2013 and was the first obesity drug to be approved by the FDA in over a decade, is yet to impress with its performance. Sales have been lackluster so far and are yet to pick up significantly.
Research & development (R&D) expenses declined 16.2% year over year to $15.5 million. General & administrative (G&A) expenses were $8.2 million, up 17.9% year over year.
The company raised $74.6 million from a public offering of its common stock during the quarter.
Pipeline Update
Arena’s pipeline consists of several early- to mid-stage candidates targeting different therapeutic areas. These include ralinepag (pulmonary arterial hypertension), etrasimod (a number of autoimmune diseases) and APD371 (pain and fibrotic diseases). Phase II trials on etrasimod and ralinepag are ongoing. The company expects to report data on etrasimod for ulcerative colitis by 2017-end and on ralinepag for pulmonary arterial hypertension in Jul 2017. Meanwhile, the company is enrolling patients in phase II trial on APD371 for the treatment of pain linked with Crohn's disease and in two phase II trials of etrasimod for dermatological extraintestinal manifestations (EIM) and pyoderma gangrenosum (PG).
Zacks Rank & Key Picks
Arena currently carries a Zacks Rank #4 (Sell).
A couple of better-ranked stock in the healthcare sector are Applied Genetic Technologies Corporation and Catabasis Pharmaceuticals, Inc. . Both the companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Applied Genetic’s earnings per share estimates increased 25.9% to 34 cents for 2017 over the last 60 days. The company posted positive surprises in all the four trailing quarters with an average beat of 222.92%.
Catabasis’ loss per share estimates narrowed 13% to $1.74 for 2017 over the last 60 days. The company posted positive earnings surprises in all the four trailing quarters, with an average beat of 7.6%.
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Arena Pharmaceuticals, Inc. reported loss of 9 cents per share in the first quarter of 2017, same as in the year-ago period but wider than the Zacks Consensus Estimate of a loss of 8 cents.
Arena’s shares are down 4.65% in after-market trading since its earnings announcement. Moreover, the company’s shares have underperformed the Zacks classified Medical-Biomed/Genetics industry so far this year. Its shares lost 9.2% while the industry registered an increase of 2%.
Total revenue in the quarter was $6.6 million, down 32.7% from the year-ago quarter. Revenues included $2.7 million in net product sales of Belviq, $1.5 million in manufacturing support payments from Japanese pharma company Eisai and $1.1 million in the form of upfront payments from collaborations with Boehringer Ingelheim and Axovant Sciences Ltd. (AXON - Free Report) .
Belviq is the only approved product in Arena’s portfolio. It was launched in Sep 2016 and is approved for chronic weight management in adult patients.
Quarter in Detail
During the first quarter of 2017, Belviq sales declined to $2.7 million from $3.5 million a year ago.
Belviq, which has been in the U.S. market since Jun 2013 and was the first obesity drug to be approved by the FDA in over a decade, is yet to impress with its performance. Sales have been lackluster so far and are yet to pick up significantly.
Research & development (R&D) expenses declined 16.2% year over year to $15.5 million. General & administrative (G&A) expenses were $8.2 million, up 17.9% year over year.
The company raised $74.6 million from a public offering of its common stock during the quarter.
Pipeline Update
Arena’s pipeline consists of several early- to mid-stage candidates targeting different therapeutic areas. These include ralinepag (pulmonary arterial hypertension), etrasimod (a number of autoimmune diseases) and APD371 (pain and fibrotic diseases). Phase II trials on etrasimod and ralinepag are ongoing. The company expects to report data on etrasimod for ulcerative colitis by 2017-end and on ralinepag for pulmonary arterial hypertension in Jul 2017. Meanwhile, the company is enrolling patients in phase II trial on APD371 for the treatment of pain linked with Crohn's disease and in two phase II trials of etrasimod for dermatological extraintestinal manifestations (EIM) and pyoderma gangrenosum (PG).
Zacks Rank & Key Picks
Arena currently carries a Zacks Rank #4 (Sell).
A couple of better-ranked stock in the healthcare sector are Applied Genetic Technologies Corporation and Catabasis Pharmaceuticals, Inc. . Both the companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.
Applied Genetic’s earnings per share estimates increased 25.9% to 34 cents for 2017 over the last 60 days. The company posted positive surprises in all the four trailing quarters with an average beat of 222.92%.
Catabasis’ loss per share estimates narrowed 13% to $1.74 for 2017 over the last 60 days. The company posted positive earnings surprises in all the four trailing quarters, with an average beat of 7.6%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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