Arena Pharmaceuticals (NASDAQ: ARNA ) and VIVUS (NASDAQ: VVUS ) are the epitome of water-cooler stocks. Every American knows that our country is dealing with an obesity epidemic, so what could be more of a "sure thing" stock than companies behind weight management pills that are clinically proven to work? If it sounds to good to be true, it's because it is.
In the following video, health care bureau chief Brenton Flynn provides a brief overview for those who are new to the Arena Pharmaceuticals story. Specifically, he discusses why a partnership that Arena entered into means that its drug, Belviq, needs to become much more than a blockbuster drug to provide shareholders with the profits they're looking for.
Are there any reasons left to own Arena?
With Belviq's FDA approval now a distant memory, investors are scrambling to decide whether to buy or sell Arena. In the Fool's premium research report, senior biotech analyst Brian Orelli takes you through a comprehensive look at this contentious stock, including its massive opportunity, potential pitfalls, and key reasons to both buy and sell. To find out more about Arena -- and get a full year of updates -- click here to access your report today.