Friday, July 30, 2010

Arena Continued, Yeeeow It's Hot

Arena (ARNA) continues to light it up, hope you are making some money. As suspected, the share price broke into the $7's and held on like a dog with a bone. It hit a high for the day of $8.00. Man o man, this is sweet. Traded over 33M shares and closed at $7.87.

Arena Pharmaceuticals has lorcaserin and not much else. This company looks ripe for a take over. If one of the big Pharmas gets interested, a $15-20 or more per share price buy out is not out of the question. This would make a buy and hold position more attractive. But Arena has already signed a 1.7B deal with Tokyo based Eisai, Inc. Eisai will market and distribute lorcaserin. The drug will be produced in Eisai's facility in Switzerland.

So, is there anything left? Indeed! Go out this weekend, maybe the lake or the amusement park or the beach and people watch. The question will be answered. Of course, the market for lorcaserin is huge (no other meaning intended). The possibilities are better than having Tamiflu in a real flu epidemic. The flu lasts for a week or two, obesity is a chronic condition.

Absent some bad news, i.e. side effects or lack of efficacy, this stock is still going to run up to the FDA Panel meeting in September. Can't wait for Monday. Be in touch.

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