Arena Pharmaceuticals, Inc. (NASDAQ:ARNA)
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) reports Q4 2016 results on March 6. An earlier schedule showed the company would release the results on February 27. Arena has had a mixed track record of quarterly earnings. It has exceeded expectations twice, met expectations once and missed expectations once in the trailing four quarter.
As the company reports Q4, analysts are expecting EPS loss of $0.09. The company posted EPS loss of $0.13 in the same quarter a year earlier, meeting the consensus estimate. Revenue in the year-ago quarter was $7.8 million, short of consensus estimate of $8.26 million.
For the last quarter, Q3 2016, ARNA produced EPS loss of $0.05, besting consensus estimate of EPS loss of $0.07. Revenue of $19 million also topped the consensus estimate of $13.99 million.
Focus on pipeline
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has only one approved product in its portfolio and that is obesity treatment called Belviq. Despite a large addressable market in the US, Belviq sales are yet to impress.
As Arena reports Q4, investors will be looking for clues about how the company intends to improve Belviq sales. Poor Arena sales have been linked to low coverage by third-party insurers, narrow focus on only a certain patients and the tendency of doctors to prescribe drugs for symptoms of obesity instead of the actual disease.
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has been working to extend the label of Belviq and a study for the label extension is underway, so positive outcome from the trial would allow Arena to extend the label of the drug. Extended label should expand the drug’s addressable market, potentially yielding more revenue for the company.
In another effort to squeeze more revenue from Belviq, Arena late last year introduced a once-daily formulation of the drug. Because Arena made the move last October, sales of the once-daily Belviq should be reflected in the upcoming 4Q results.
Other product candidates
Other than Belviq, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) investors will also have their eyes and ears on the company’s pipeline update.
Arena has several candidates in its pipeline. They include ralinepag, which is being developed as a treatment for pulmonary arterial hypertension and is in Phase 2 clinical study. The other is etrasimod, which is also a Phase 2 candidate being developed as a treatment for ulcerative colitis.
Shares of Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) rose 6.8% to $1.57 on Monday. The stock is up more than 10% since the beginning of the year, and has risen about 2% over the last one year.
|Last Price a/o, 4:02PM EST||$ 1.57|
|Average Volume (mlns)||1.61|
|Market Cap (mlns)||$ 381.91|
|Shares Outstanding (mlns)||243.25|
|Share Float (mlns)||242.12|
|Short Interest Ratio||5.67|
I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 96 hours. All information, or data, is provided with no guarantees of accuracy.
About the author: Monica Gray has an undergraduate degree in Accounting and an MBA – earned with Honors. She has six years of experience in the financial markets and has been a securities analyst for the past two years.