Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotechnology company Arena Pharmaceuticals (NASDAQ: ARNA ) surged 17% today after expanding its marketing deal with Japanese drug maker Eisai for its obesity drug Belviq.
So what: Under the agreement, Eisai will give Arena an upfront payment of $60 million and milestone payments of up to $176.5 million for the rights to market Belviq in all countries worldwide (except South Korea, Taiwan, Australia, Israel, and New Zealand), reigniting optimism over the drug's adoption trajectory. Additionally, Arena will receive up to about 36% of Eisai's net sales on the drug based on certain conditions, suggesting that Arena's top line is starting to pick up steam after Belviq's disappointing launch.
Now what: Eisai also announced plans to double Belviq's U.S. sales force to 400 reps by this December.
"Additional work is needed to continue building the weight management market, and we are pleased with Eisai's commitment to realizing the medical and commercial potential of BELVIQ," said Arena CEO Jack Lief. "We look forward to the market growth of this important treatment option as we move into 2014."
So while Arena might still be too speculative for average investors, today's positive news, coupled with the fact that the shares remain well off their 52-week highs, make the stock an interesting pick for biotech experts.
More reliable ways to wealth
Dividend stocks can make you rich. It's as simple as that. While they don't garner the notoriety of high-flying growth stocks, they're also less likely to crash and burn. And over the long term, the compounding effect of the quarterly payouts, as well as their growth, adds up faster than most investors imagine. With this in mind, our analysts sat down to identify the absolute best of the best when it comes to rock-solid dividend stocks, drawing up a list in this free report of nine that fit the bill. To discover the identities of these companies before the rest of the market catches on, you can download this valuable free report by simply clicking here now.