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What: Shares of biotechnology company Arena Pharmaceuticals
So what: According to a report by MarketWatch, Arena's shares were rising due to an unconfirmed rumor that there may be interest in purchasing the biotech company. Arena received approval for diet drug Belviq last month -- the first FDA-approved obesity treatment in more than a decade.
Now what: It isn't a stretch to assume that a big pharmaceutical company could be interested in Arena. About one-third of the U.S. population is overweight, so the implications of a diet drug when coupled with a diet could lead to multibillion-dollar possibilities.
It will not, however, be a cakewalk for Arena. For one, Belviq still needs to be successfully launched. As we've witnessed from multiple biotechs recently, launching a new drug successfully is almost as difficult as getting it approved in the first place. There's also VIVUS
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Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.
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