We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Arena (ARNA) Stock Up in 6 Months on PFE Merger Deal & Pipeline
Read MoreHide Full Article
Arena Pharmaceuticals’ shares have surged 46.8% in the past six months against the industry’s 24.8% decline.
Image Source: Zacks Investment Research
This rise is primarily attributable to a definitive agreement entered by Arena last month with Pfizer (PFE - Free Report) , wherein the latter will acquire the former in an all-cash transaction for $100 per share or a total equity value of approximately $6.7 billion.
Currently, Arena has no marketable products in its portfolio. The company’s late-stage candidate, etrasimod, is being evaluated in two pivotal phase III studies evaluating etrasimod for treating ulcerative colitis (“UC”). Top-line data from both the studies are expected in first-quarter 2022. The successful completion of the study will lead to the potential approval of the candidate as a treatment for UC.
Apart from UC, etrasimod is also being studied across multiple gastroenterology and dermatology indications. While the candidate is expected to soon enter into a phase III program for atopic dermatitis, it is being evaluated in separate mid-stage studies for eosinophilic esophagitis, Crohn’s disease and alopecia areata indications.
Other than etrasimod, Arena has two other mid-stage candidates — APD418 and temanogrel — in its pipeline that are being developed as treatments for cardiovascular disorders in separate phase II studies. Temanogrel is also being evaluated in a phase II study in Raynaud’s phenomenon secondary to systemic sclerosis.
Last July, Arena entered into a strategic collaboration with Aristea Therapeutics to advance the clinical development of RIST4721, an oral CXCR2 antagonist being developed by the former for the treatment of palmoplantar pustulosis (PPP) and other neutrophil-mediated diseases. The company has an exclusive option to acquire Aristea upon completion of the phase IIb study for RIST4721 in PPP indication.
The acquisition deal between Pfizer and Arena is a win-win for both the companies. Since Arena has no marketable products in its portfolio, it lacks a steady stream of revenues. The acquisition by a big pharma giant like Pfizer, which is sitting on high reserves of cash, would allow the company to advance the development of its pipeline. Once the pipeline candidates are approved for marketing, Arena will have access to Pfizer’s larger and well-established commercial supply chain and network distribution.
In Pfizer’s case, the addition of a promising late-stage candidate like etrasimod will help it save the time required for developing a candidate from scratch. The COVID-19 vaccine sales have significantly boosted Pfizer’s revenues and cash resources. Pfizer is also looking to utilize cash resources to expand its pipeline. Over the next few years, several products in Pfizer’s portfolio will face patent expiration.
Even though Pfizer already has drugs approved for treating indications, for which Arena is evaluating etrasimod, there is a difference in the mechanism of action.
Both Arena and Pfizer did not provide any timeline for closing this deal, which is subject to customary closing conditions, including approval from Arena’s shareholders and regulatory authorities.
BioNTech’s earnings per share estimates for 2022 have increased from $30.97 to $32.52 in the past 30 days. Shares of BioNTech have risen 92.9% in the past year.
Earnings of BioNTech beat estimates in all the last four quarters, delivering a surprise of 132.4%, on average.
Vir Biotechnology’s bottom-line estimates for 2022 have been revised from a loss of $0.01 per share to earnings of $6.82 in the past 30 days.
Earnings of Vir Biotechnology beat estimates in two of the last four quarters while missing on the other two occasions. Resultantly, VIR has an average earnings surprise of 13%.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Arena (ARNA) Stock Up in 6 Months on PFE Merger Deal & Pipeline
Arena Pharmaceuticals’ shares have surged 46.8% in the past six months against the industry’s 24.8% decline.
This rise is primarily attributable to a definitive agreement entered by Arena last month with Pfizer (PFE - Free Report) , wherein the latter will acquire the former in an all-cash transaction for $100 per share or a total equity value of approximately $6.7 billion.
Currently, Arena has no marketable products in its portfolio. The company’s late-stage candidate, etrasimod, is being evaluated in two pivotal phase III studies evaluating etrasimod for treating ulcerative colitis (“UC”). Top-line data from both the studies are expected in first-quarter 2022. The successful completion of the study will lead to the potential approval of the candidate as a treatment for UC.
Apart from UC, etrasimod is also being studied across multiple gastroenterology and dermatology indications. While the candidate is expected to soon enter into a phase III program for atopic dermatitis, it is being evaluated in separate mid-stage studies for eosinophilic esophagitis, Crohn’s disease and alopecia areata indications.
Other than etrasimod, Arena has two other mid-stage candidates — APD418 and temanogrel — in its pipeline that are being developed as treatments for cardiovascular disorders in separate phase II studies. Temanogrel is also being evaluated in a phase II study in Raynaud’s phenomenon secondary to systemic sclerosis.
Last July, Arena entered into a strategic collaboration with Aristea Therapeutics to advance the clinical development of RIST4721, an oral CXCR2 antagonist being developed by the former for the treatment of palmoplantar pustulosis (PPP) and other neutrophil-mediated diseases. The company has an exclusive option to acquire Aristea upon completion of the phase IIb study for RIST4721 in PPP indication.
The acquisition deal between Pfizer and Arena is a win-win for both the companies. Since Arena has no marketable products in its portfolio, it lacks a steady stream of revenues. The acquisition by a big pharma giant like Pfizer, which is sitting on high reserves of cash, would allow the company to advance the development of its pipeline. Once the pipeline candidates are approved for marketing, Arena will have access to Pfizer’s larger and well-established commercial supply chain and network distribution.
In Pfizer’s case, the addition of a promising late-stage candidate like etrasimod will help it save the time required for developing a candidate from scratch. The COVID-19 vaccine sales have significantly boosted Pfizer’s revenues and cash resources. Pfizer is also looking to utilize cash resources to expand its pipeline. Over the next few years, several products in Pfizer’s portfolio will face patent expiration.
Even though Pfizer already has drugs approved for treating indications, for which Arena is evaluating etrasimod, there is a difference in the mechanism of action.
Both Arena and Pfizer did not provide any timeline for closing this deal, which is subject to customary closing conditions, including approval from Arena’s shareholders and regulatory authorities.
Arena Pharmaceuticals, Inc. Price
Arena Pharmaceuticals, Inc. price | Arena Pharmaceuticals, Inc. Quote
Zacks Rank & Other Stocks to Consider
Arena currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks in the same sector include BioNTech (BNTX - Free Report) and Vir Biotechnology (VIR - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
BioNTech’s earnings per share estimates for 2022 have increased from $30.97 to $32.52 in the past 30 days. Shares of BioNTech have risen 92.9% in the past year.
Earnings of BioNTech beat estimates in all the last four quarters, delivering a surprise of 132.4%, on average.
Vir Biotechnology’s bottom-line estimates for 2022 have been revised from a loss of $0.01 per share to earnings of $6.82 in the past 30 days.
Earnings of Vir Biotechnology beat estimates in two of the last four quarters while missing on the other two occasions. Resultantly, VIR has an average earnings surprise of 13%.