Arena Pharmaceuticals, Inc.(NASDAQ:ARNA) Future Potential Drives Demand For Its Stock


Dallas, Texas 11/14/2013 (Financialstrend) – The $1.13 billion small cap drug maker Arena Pharmaceuticals, Inc.(NASDAQ:ARNA) seems it is all set to turn the corner and emerge as a profit making drug and biotech firm over the next few quarters. This big build up in the momentum of this stock is reflected both in its operational numbers which it reported last week as also in the continued confidence the markets and investors have shown in the stock of the drug maker.

Readers should note that in the past five days of trading the Arena Pharmaceuticals, Inc.(NASDAQ:ARNA)  has managed to absorb a 25% increase in its market valuation which almost wipes off the losses the stock had accumulated in the past 90 days of trading.  At close of business on November 13, the stock was trading at 5.2% per share which is almost 52% below its prior 52 week high bench mark price of $11 per share.

The robust growth in investor confidence and value is being driven by better than expected dip in net losses and public announcements of new partnerships to further grow the demand for its flag ship drug for obesity. Jack Lief, who is the company co-founder and also executes multiple roles of Chairman, CEO and President has been quoted as saying that, “The marketing and supply agreement for BELIVIQ, with Eisai has now been expanded to include most countries worldwide. Our collaboration creates a powerful platform to deliver this novel compound for new treatments in the future. Under the terms of this agreement, we’ll receive from Eisai an upfront payment of $60 million and in addition we’re eligible to receive up to a total of $176.5 million in regulatory and development milestone payment.”

Arena Pharmaceuticals, Inc.(NASDAQ:ARNA) has also announced that it is eligible to a impressive $1.56 billion “in one-time purchase price adjustment payments” for sales in the new markets which got covered under the extended agreement.