Shareholders of Arena Pharmaceuticals (NASDAQ:ARNA) endured a significant drop in share prices last month only to see shares win back some of their gains this month after the company announced the departure of its co-founder and CEO.
Although a fresh set of eyes in the C-suite could begin to repair the significant damage done to shareholder value over the past few years, the company's challenges extend far beyond its leadership and, without a major cost-cutting program, the struggles facing Arena Pharmaceuticals makes it too risky of a stock to buy.
Todd Campbell has no position in any stocks mentioned. Todd owns E.B. Capital Markets, LLC. E.B. Capital's clients may have positions in the companies mentioned. The Motley Fool has no position in any of the stocks mentioned. 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.