Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)

CAPS Rating: 3 out of 5

A clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs in four major therapeutic areas: cardiovascular, central nervous system, inflammatory and metabolic diseases.

Recs

1
Player Avatar TMFBiologyFool (98.65) Submitted: 11/28/2012 3:56:55 PM : Underperform Start Price: $9.25 ARNA Score: +64.95

Short the launch.

Member Avatar TheStockDoctor (< 20) Submitted: 3/3/2013 10:23:45 PM
Recs: 0

After the flop of Qsymia, I doubt Belviq will experience the same fate. ARNA management has taken proactive steps to avoid the many pitfalls of Vivus.

The risk-reward ratio is simply not there with ARNA. If the launch is slow, it might drop a dollar, but if the launch is strong we could see a 50%+ pop in the share price. Add to that the EU wildcard, which could juice the stock over $20/share, and any short prospect becomes scary.

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