My timing is rather impeccable. In a review of obesity drugs on Friday, I said that Arena
Arena's lead drug, lorcaserin, targets the same receptor as one of the components in the infamous diet drug fen-phen, made by American Home Products (now Wyeth
Apparently, investors weren't that worried about the safety data; the stock spiked a little on Monday after investors heard the good news, but has since retreated to Friday's levels.
Like fellow development-stage drugmakers Exelixis
The good news is that Arena appears to have enough cash to get it to the point where it can file a marketing application in 2009. Hopefully, the market will be in better shape by then and it can do a dilutive financing to fund the drug launch. Alternatively, it could out-license lorcaserin to reduce its cash-burn. If Merck
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Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. The Motley Fool owns shares of Exelixis. The Fool's disclosure policy enjoys hunting the truffles served up by nature and by chocolatiers.