Science Arena Investors Need to Know

Arena Pharmaceuticals won approval from the Food and Drug Administration for its obesity drug, Belviq, in June, and its share price has jumped more than 380% year to date. Shareholders have undoubtedly enjoyed this return, but where will Arena go from here? How will Belviq fare against VIVUS' rival obesity drug, Qsymia? Will Orexigen's weight loss candidate, Contrave -- which could be FDA-approved soon -- ultimately prove to be the long-term winner in this market?

These are difficult questions to answer, but understanding the science behind these drugs can help you read through press releases and make better investing decisions. In this video, health care analyst Max Macaluso discusses how Belviq works biologically and notes a few things to watch in Arena's upcoming post-marketing studies.

Arena is confronting significant challenges as it prepares to launch Belviq in 2013. In our brand new premium research report on Arena Pharmaceuticals, senior biotech analyst Brian Orelli walks investors through both the opportunities and threats facing the company. Since key news can develop quickly, we're also including a full year of updates for those who sign up. Click here now to learn more.

Max Macaluso has no positions in the stocks mentioned above. Feel free to send him an email or contact him on Twitter @TMFMassimo if you have questions for him to answer in this new video series. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (8) | Recommend This Article (8)

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On September 22, 2012, at 2:31 AM, mhonarvarthe2nd wrote:

    Id like to believe you guys want us to "invest better"

    but it just looks like your trying to become the youtube for stocks.

    do you really think people enjoy loading up video after video instead of reading a one page article?

  • Report this Comment On September 23, 2012, at 12:50 AM, slsabo wrote:

    This video/commentary is in line with most of the other info put out by analyst, blogs tied to investment firms, etc, one sided to protect their interest or the interest of those they are connected with. You try compare a drug from 10 plus years ago when science has already made the very distinct difference between the two. Why have none of the above mentioned invested groups even remotely referenced the DM side of this drug, This side may be more important then the weight loss side. There is no comparison scientifically between the 2 drugs in question. If you want to do a segment on Arena's drug, then do one, but do it as a non vested party, with science in mind so you stay out of the idiots group. What I just watched and listened to was a waste of time. Do a segment based on true science because to date very few understand the true % of weight loss which can occur with this drug. When it is about money or money that has been lost already that precedes the true value which is the millions that it will benefit from a health care perspective.

  • Report this Comment On September 23, 2012, at 3:36 PM, bhasa04 wrote:

    Belviq (Lorcaserin) weight-loss clinical trial patient Ed Susman (who is a MedPage reporter in real life) lost 55 lbs in one year.

    His weight went from 293 to 238 lbs, that is 55 lbs. In other words, he lost 18% of his body weight.

    The low 3% weight loss number often quoted by "Experts" is nonsense. This drug will be a blockbuster for ARNA once people start realizing the large amount of weight they can lose without major side effects

    Details here: www.medpagetoday.com/PrimaryCare/Obesity/33723

  • Report this Comment On September 23, 2012, at 3:38 PM, bhasa04 wrote:

    Here is another testimony of a Doctor and another patient who was part of Lorcaserin/Belviq clinial trial. They urged FDA to approve Lorcaserin/Belviq

    http://www.youtube.com/watch?v=vih0pxY23lY&feature=relmf...

  • Report this Comment On September 24, 2012, at 4:48 AM, mrmarkaallen wrote:

    There has been a campaign against ARNA going on since before approval. The reality is that the hedge funds bet against ARNA (44million shares short) and the big institutions bet on VVUS. When ARNA received approval 72% of the shares were owned by individual investors. This is very unusual and has sparked a campaign by the powers that be to try and convince these investors, who had it right to sell their shares.

    This is one investor that has been in since the first FDA rejection and has rode it out. I am not selling my shares until the share price reflects the true value of the company and not the hedgie manipulated valuation.

  • Report this Comment On September 24, 2012, at 4:52 AM, mrmarkaallen wrote:

    ARNA nailed it, you guys were wrong. Wrong before approval, wrong aout the true weight loss, wrong about the valuation and you are wrong about EU approval for ARNA.

    Stop the FUD and report the news please.

  • Report this Comment On September 24, 2012, at 7:30 AM, SamFreedom wrote:

    Sad

  • Report this Comment On September 24, 2012, at 1:28 PM, Blindnomore wrote:

    Still short I see. Worthless useless information here. Why compare Belviq to Fen Phen? Because they both affect a serotonin receptor? Every drug taken effects one of these receptors which are very numerous within the brain. Hey Vivus' drug effects receptors in the brain so I guess they will develop heart problems. Err well actually the receptors they effect are named with a different number and letter combo just like Belviq and Fen Phen are. When will journalists and writers of information again investigate what they write about? Probably never since it requires work and usually provides for a worthy informative article. I think covering your short position would be prudent. Waiting will prove to be more costly.

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