Shares of drugmaker Arena Pharmaceuticals (ARNA) took a 10% hit in intraday trading after the company reported that Europe's CHMP has asked for more information regarding its obesity drug Belviq. While Arena will have a chance to respond to the committee before an official decision is made, it looks like Belviq's chances for EU approval are deteriorating fast. Investors should also note that Arena's chief rival, VIVUS (VVUS), was dealt an EU rejection for its drug Qsymia back in September.
In this video, health care analysts Max Macaluso and Brenton Flynn discuss this news in the context of the competitive obesity drug space, and they reflect on the challenges that obesity drugmakers -- including Orexigen Therapeutics (NASDAQ: OREX) -- face in getting their drugs approved across the Atlantic.
