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Arena (ARNA) Q4 Earnings Miss Estimates, Pipeline Progresses
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Arena Pharmaceuticals, Inc. incurred a loss of $2.10 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $1.97. The company had incurred loss of $1.76 in the year-ago quarter.
Arena recorded no revenues in the reported quarter, as expected by the market. The company had recorded revenues of $3 million in the year-ago quarter.
Shares of Arena have gained 55.4% in the past year compared with the industry’s 11.4% increase.
Quarter in Details
Research & development (R&D) expenses escalated 34.6% from the prior-year level to $100.4 million, primarily as a result of the progress of its pipeline candidates to the next phase of clinical development, including phase III development program of etrasimod.
Selling, general and administrative expenses increased 57.2% from the year-ago figure to $34.9 million.
The company ended the quarter with approximately $1.1 billion in cash, cash equivalents and investments balance compared with $1.2 billion as of Sep 30, 2020.
Full-Year Results
Arena reported revenues of $0.3 million compared with $806.4 million in the year-ago period. The company incurred a loss of $7.39 per share against earnings of $7.99 per share in the year-ago period.
Pipeline Update
Arena’s pipeline currently consists of two key candidates, namely etrasimod (autoimmune diseases) and olorinab (pain and fibrotic diseases). It also has two early-stage candidates, ADP418 and temanogrel.
Etrasimod is presently in late-stage development for ulcerative colitis. Arena is evaluating the candidate in the pivotal phase III ELEVATE UC 52 study and another phase III study — ELEVATE UC 12 — as a treatment for moderately-to-severely active ulcerative colitis ("UC"). Top-line data from both studies are expected in the first quarter of 2022.
Earlier this month, the company initiated a phase IIb study — VOYAGE — to evaluate etrasimod in patients with eosinophilic esophagitis (EoE).
The company is also evaluating the candidate in the phase IIb/III CULTIVATE study in patients with Crohn's disease. A phase II study is evaluating etrasimod in alopecia areata (AA) patients. The company is progressing the candidate in a phase III registrational program to evaluate it as a potential treatment for atopic dermatitis.
The company is evaluating olonarib in the phase II CAPTIVATE study as a treatment for abdominal pain associated with irritable bowel syndrome. The company anticipates to provide top-line data by the end of this quarter.
The company also completed a phase I study evaluating APD418 for acute heart failure successfully during the third quarter of 2020. A phase II study is expected to start soon. The temanogrel program was announced last month at the JP Morgan Health Care Conference. It will be developed for treating coronary microvascular obstruction disease. A phase II study is under planning.
Arena Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Moderna’s earnings per share estimates have moved up from $9.45 to $14.74 for 2021 in the past 60 days. The stock has soared 707.8% in the past year.
Lexicon’s loss per share estimates narrowed from 66 cents to 17 cents for 2021 in the past 60 days. The company delivered an earnings surprise of 21.72%, on average, in the last four quarters. The stock has risen 168.2% in the past year.
Dynavax’s loss per share estimates have narrowed from 45 cents to 17 cents for 2021 in the past 60 days. The stock has risen 92% in the past year.
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A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
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Arena (ARNA) Q4 Earnings Miss Estimates, Pipeline Progresses
Arena Pharmaceuticals, Inc. incurred a loss of $2.10 per share in the fourth quarter of 2020, wider than the Zacks Consensus Estimate of a loss of $1.97. The company had incurred loss of $1.76 in the year-ago quarter.
Arena recorded no revenues in the reported quarter, as expected by the market. The company had recorded revenues of $3 million in the year-ago quarter.
Shares of Arena have gained 55.4% in the past year compared with the industry’s 11.4% increase.
Quarter in Details
Research & development (R&D) expenses escalated 34.6% from the prior-year level to $100.4 million, primarily as a result of the progress of its pipeline candidates to the next phase of clinical development, including phase III development program of etrasimod.
Selling, general and administrative expenses increased 57.2% from the year-ago figure to $34.9 million.
The company ended the quarter with approximately $1.1 billion in cash, cash equivalents and investments balance compared with $1.2 billion as of Sep 30, 2020.
Full-Year Results
Arena reported revenues of $0.3 million compared with $806.4 million in the year-ago period. The company incurred a loss of $7.39 per share against earnings of $7.99 per share in the year-ago period.
Pipeline Update
Arena’s pipeline currently consists of two key candidates, namely etrasimod (autoimmune diseases) and olorinab (pain and fibrotic diseases). It also has two early-stage candidates, ADP418 and temanogrel.
Etrasimod is presently in late-stage development for ulcerative colitis. Arena is evaluating the candidate in the pivotal phase III ELEVATE UC 52 study and another phase III study — ELEVATE UC 12 — as a treatment for moderately-to-severely active ulcerative colitis ("UC"). Top-line data from both studies are expected in the first quarter of 2022.
Earlier this month, the company initiated a phase IIb study — VOYAGE — to evaluate etrasimod in patients with eosinophilic esophagitis (EoE).
The company is also evaluating the candidate in the phase IIb/III CULTIVATE study in patients with Crohn's disease. A phase II study is evaluating etrasimod in alopecia areata (AA) patients. The company is progressing the candidate in a phase III registrational program to evaluate it as a potential treatment for atopic dermatitis.
The company is evaluating olonarib in the phase II CAPTIVATE study as a treatment for abdominal pain associated with irritable bowel syndrome. The company anticipates to provide top-line data by the end of this quarter.
The company also completed a phase I study evaluating APD418 for acute heart failure successfully during the third quarter of 2020. A phase II study is expected to start soon. The temanogrel program was announced last month at the JP Morgan Health Care Conference. It will be developed for treating coronary microvascular obstruction disease. A phase II study is under planning.
Arena Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Arena Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Arena Pharmaceuticals, Inc. Quote
Zacks Rank and Stocks to Consider
Currently, Arena is a Zacks Rank #3 (Hold) stock.
Some better-ranked stocks from the biotech sector include Moderna, Inc. (MRNA - Free Report) , Lexicon Pharmaceuticals, Inc. (LXRX - Free Report) and Dynavax Technologies (DVAX - Free Report) . While Moderna sports a Zacks Rank #1 (Strong Buy), Lexicon and Dynavax carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Moderna’s earnings per share estimates have moved up from $9.45 to $14.74 for 2021 in the past 60 days. The stock has soared 707.8% in the past year.
Lexicon’s loss per share estimates narrowed from 66 cents to 17 cents for 2021 in the past 60 days. The company delivered an earnings surprise of 21.72%, on average, in the last four quarters. The stock has risen 168.2% in the past year.
Dynavax’s loss per share estimates have narrowed from 45 cents to 17 cents for 2021 in the past 60 days. The stock has risen 92% in the past year.
Biggest Tech Breakthrough in a Generation
Be among the early investors in the new type of device that experts say could impact society as much as the discovery of electricity. Current technology will soon be outdated and replaced by these new devices. In the process, it’s expected to create 22 million jobs and generate $12.3 trillion in activity.
A select few stocks could skyrocket the most as rollout accelerates for this new tech. Early investors could see gains similar to buying Microsoft in the 1990s. Zacks’ just-released special report reveals 8 stocks to watch. The report is only available for a limited time.
See 8 breakthrough stocks now>>