Arena Pharmaceuticals, Inc. (ARNA - Free Report) reported a loss of 65 cents per share for the second quarter of 2018, wider than the Zacks Consensus Estimate of a loss of 62 cents. The year-ago loss was 77 cents per share.
The stock has gained 11.4% so far this year against the industry’s decline of 4.9%.
Total revenues in the quarter were $4 million, up 110.4% from the year-ago quarter. Sales beat the Zacks Consensus Estimate of $0.93 million. Revenues include $3.1 million from collaboration revenues and $0.9 million in royalty.
Research & development (R&D) expenses increased 51.6% from the year-ago level to $26.8 million.
General and administrative (SG&A) expenses were up 45.5% to $10.4 million in the quarter.
Arena’s pipeline comprises three key candidates - ralinepag (vascular diseases), etrasimod (APD334; autoimmune diseases) and Olorinab/APD371 (pain and fibrotic diseases).
Ralinepag, which is being developed for the treatment of pulmonary arterial hypertension (“PAH”), was advanced to phase III development during the quarter. The company initiated a phase III study on the candidate to evaluate time to clinical events outcomes. Two other phase III studies are likely to start by the end of 2018 and early 2019 on the candidate.
Etrasimod is currently being evaluated in a phase II study, evaluating it in primary biliary cholangitis. The company is on track to discuss study design for phase II/III study in Crohn's disease and a phase III study in Ulcerative colitis.
Data from a phase II study (OASIS) on ulcerative colitis, announced in March, demonstrated clinical remission in 33% of the patients on etrasimod versus 8.1% for placebo.
The company has completed enrolment in the phase II study, evaluating olorinab for the treatment of pain associated with Crohn's disease. Data from the study is expected in September 2018.
Zacks Rank & Stocks to Consider
Arena Pharmaceuticals currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Vertex Pharmaceuticals (VRTX - Free Report) , Seattle Genetics (SGEN - Free Report) and Galapagos NV (GLPG - Free Report) . All the stocks sport a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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