Put Calls Anyone?

Image via Wikipedia Arena Pharmaceuticals is in a tough spot as the FDA rejects their weight loss drug lorcaserin, apparently one of the safer of the 3 up for approval.

Here is the link to investors. 

This decision was expected and predicted in my past articles on the Obesity Drug Market.  We all saw it coming.  I'm sorry if you didn't.  But expect loses for Orexigen, and Vivus with their upcoming FDA decisions.   I can only see gains made with shorting the stocks.  Those that had are sitting pretty right now.  It's a gamble but sometimes these gambles pay off.  I expect more loses to mount for these companies in the near future.  Arena Pharmaceuticals, Vivus Inc., and Orexigen Therapeutics.

What they chose to do next is anyones guess.  The technology could be sold off for further research.  And the company enters bankruptcy court.  Nonetheless just passing on the news.  I'm not always right but some are easier to pick than others.  Last weeks news of Amylin, Alkermes, and Eli Lilly and Company for their diabetes medicine was a heartbreaker for those who thought it would go the other way.  But there are always more to look at.  Keep looking forward and use it as a lesson.

Arena Pharmaceuticals Enters FDA Purgatory

Welcome to FDA purgatory, Arena Pharmaceuticals. It could be a long wait.

Why the FDA Won't Approve Lorcaserin and Qnexa (Yet)

Hot Air Images via WikipediaI don't see much hope for Arena Pharmaceuticals, Vivus, or Orexigen at gaining FDA approval at this time.  I see it as a bunch of hot air and will not be approved with this conservative FDA panel right now.  That's not to say a CRL is necessarily a bad thing but at what point does the funding run dry?  Shorting these stocks wouldn't be a bad idea.  Especially, Vivus and Orexigen.  At a lofty 5 and 6 points it won't take much time to take the plunge to 2.

Wikinvest--ARNA, VVUS, OREX

By Brian Orelli
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October 19, 2010
 
After months of speculation and a pair of Food and Drug Administration advisory panels, FDA decisions for Arena Pharmaceuticals' (Nasdaq: ARNA) lorcaserin and VIVUS' (Nasdaq: VVUS) Qnexa are finally upon us.

Arena's PDUFA date is Oct. 22, while VIVUS' date with destiny is six days later on the 28th. The Prescription Drug User Fee Act (PDUFA) sets the goal for the FDA to make a decision by then, but the FDA is free to make a decision at any point before or after that date. A decision on lorcaserin especially could be delayed since the FDA advisory panel met just last month.

What's the chance of lorcaserin and Qnexa gaining FDA approval? I'd put it somewhere between unlikely and nonexistent.

If you would like more Subscribe To BioPharma Investor for everyday stock news and up to date FDA decisions.  Biopharma Investor

Investor's Class Action Lawsuit For Arena Pharmaceuticals: ARNA

Image via Wikipedia

I received a Class Action Notice from William Pratt on Arena Pharmaceuticals.  Plaintiffs have until November 19, 2010 to move to court.  You must have been an investor from December 8, 2009 anytime until September 16, 2010.  I actually sold my shares before the decline so I didn't really lose that much money, but I realize that many people did lose a lot of money over this stock.  I advised people to sell when I didn't like what I saw. 

Numerous Law Firms are Filing Class Action Lawsuits against Arena Pharmaceuticals.  This cannot be good for the future of the company.  I personally did not lose a huge sum of money and warned people against the dangers of the FDA decisions being made or not being made by the FDA.  This actually came down because of an FDA panel lack of recommendation.

 

 

Arena Pharmaceuticals, Inc. Class Action Litigation.: Filed Case  

Spector Roseman Kodroff & Willis, P.C. Announces Class Action Lawsuits Against Arena Pharmaceuticals, Inc. -- ARNA

FDA rejects Arena's Lorcaserin, Stock Plunges

If you may have noticed, I haven't covered the weight loss drug companies since the panel rejected Vivus' Qnexa. Vivus (VVUS), Orexigen (OREX), and Arena (ARNA) are all horrible stock plays right now with the Ultra Conservative FDA board under the Obama administration right now. Sure the drugs might work., but the FDA isn't going to approve anything that might have any hint of a safety concern. Today is a good example of why that is true.

Three Hot BioPharma Investment Plays: ARNA, JAZZ, and PRAN

 I have a few investment plays in the BioPharma field that I would like to share with everyone. These plays include Arena Pharmacueticals, Jazz Pharmaceuticals, and Prana Biotechnology. The first play is Arena Pharmaceuticals NASDAQ:ARNA. JP Morgan recently downgraded the stock Monday August 2 to Neutral, however Jim Cramer recommended the stock as a buy last Friday on his show MadMoney. Today's afterhours earnings estimate for Q2 was a better than expected loss and I see the stock rising heavily in the next month with the highly anticipated FDA panel review September 16th. ---I have since changed my outlook on all these stocks and actually recommend shorting them lately.