Arena Pharma Received its Third Buy in a Row

By Austin Angelo

After JMP Securities and Citigroup assigned a Buy rating to Arena Pharma in the last month, the company received another Buy, this time from Cantor Fitzgerald. Analyst William Tanner reiterated a Buy rating on Arena Pharma (NASDAQ: ARNA) today and set a price target of $45. The company’s shares opened today at $39.86, close to its 52-week high of $44.50.

Tanner commented:

“Top-line UC data should be the highlight of 1Q18. With release of 4Q17 results today, management guided to release of data from the etrasimod trial in March. Given the breadth of the potential therapeutic and commercial opportunities for etrasimod as compared with ralinepag, we believe the data release will be a stock-moving event of significant import. As noted in our preview report published on February 26, we believe investors should view the results from a perspective that includes the totality of the data. We believe it unlikely, for example, that remission will be achieved in subjects treated with etrasimod, owing to the fact that the trial was not powered to demonstrate that effect. We believe a clean side-effect profile and evidence of dose-related circulating T lymphocyte reduction will be important, the latter particularly so as it relates to the compound’s mechanism of action.”

According to TipRanks.com, Tanner is a 4-star analyst with an average return of 13.2% and a 52.3% success rate. Tanner covers the Healthcare sector, focusing on stocks such as Synergy Pharmaceuticals Inc, Arcturus Therapeutics Ltd, and Supernus Pharmaceuticals.

Currently, the analyst consensus on Arena Pharma is Strong Buy and the average price target is $54.40, representing a 36.5% upside.

In a report issued on February 27, Citigroup also maintained a Buy rating on the stock with a $55 price target.

Based on Arena Pharma’s latest earnings report for the quarter ending September 30, the company posted quarterly revenue of $7.95 million and GAAP net loss of $32.35 million. In comparison, last year the company earned revenue of $85.37 million and had a net profit of $38.57 million.

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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.