FBR Capital Reiterates a Buy Rating on Arena Pharma

By Austin Angelo

In a report issued on November 8, Christopher James from FBR Capital reiterated a Buy rating on Arena Pharma (NASDAQ: ARNA), with a price target of $6. The company’s shares closed yesterday at $1.59.

James noted:

“On November 7, ARNA hosted an earnings conference call to discuss its 3Q16 financial performance and provide an update on its commercial and drug development operations. ARNA, historically, has focused on obesity with its one approved drug, Belviq (lorcaserin); however, it has shifted its focus to the expansion of its developmental pipeline of three proprietary compounds. We provide three key takeaways from the call: (1) We see an opportunity for multiple presentations at scientific meetings in the fourth quarter; (2) clinical program milestones remain on track, with the initiation of a Phase II study with APD371 in early 2017; (3) there is the addition of Beacon Discovery as an independent drug discovery incubator for early development. From speaking with management after the call, we think that ARNA’s efforts on clinical execution will result in a number of key data readouts in 2017.”

According to TipRanks.com, James is ranked 0 out of 5 stars with an average return of -21.5% and a 27.2% success rate. James covers the Healthcare sector, focusing on stocks such as Madrigal Pharmaceuticals, Inc., Aviragen Therapeutics, Inc., and Achillion Pharmaceuticals.

Arena Pharma has an analyst consensus of Moderate Buy.

The company has a one year high of $2.68 and a one year low of $1.30. Currently, Arena Pharma has an average volume of 1.58M.

Arena Pharmaceuticals, Inc. is a biopharmaceutical company engages in the discovery, development, and commercialization of novel drugs that target G protien-coupled receptors. It offers a range of drugs for treatment in the field of cardiovascular, central nervous system, inflammatory, and metabolic diseases. The company was founded by Dominic P. Behan and Jack Lief on April 14, 1997 and is headquartered in San Diego, CA.