Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) Unlikely To Beat Earning Estimates on High Expenses


Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is to post its fourth-quarter earnings on Monday waiting to see if it did continue with the fine run experienced in the third-quarter that saw earnings soar by 61.54%. The pharmaceutical company experienced an impressive run in the third quarter with sales for its lead drug Belviq increasing sequentially.

Sales for Belviq have mostly been impacted by a collaboration agreement with Eisai for the marketing and distribution of the drug in the U.S.. However, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) could have a big headwind on its hand in the name of obesity drug Contrave from Orexigen Therapeutics, Inc. (NASDAQ:OREX) that posted net sales of $6.5 million in the fourth quarter.

 Contrave could have had a market disruption effect in the fourth quarter as it gears for review in Europe under the review name Mysimba. The final decision on its approval is to be made next month. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) fourth-quarter earnings might also be affected by higher operating expenses as the company continues to invest heavily on its pipeline.

 The Pharma’s pipeline currently includes the likes of Ralinepag a drug for pulmonary arterial hypertension, currently in Phase II trials as well as APD334 ulcerative colitis and Crohn’s disease drug also in Phase II trials. Arena Pharmaceuticals is poised to provide an update of its pipeline along with its fourth quarter earnings.

 Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) could post a wider than expected loss for the fourth quarter according to the Street. Analysts are expecting the company to post a loss of 26 cents a share. Revenues according to estimates could come in at $10.4 million representing a 59% increase from last year’s levels of $6.5 million. Full-year revenue is expected to come in at $38.2 million. Analysts at Zacks currently have a hold rating on the stock with Rank 3.


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