Arena Pharmaceuticals, Inc. (ARNA), VIVUS, Inc. (VVUS) & The Panacea For Obesity?

The chart below shows that for quite some time Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) has had a growth rate about 200% more than the growth rate of Nasdaq and S&P 500.

The company generated revenues of $27.6 million in the financial year 2012 compared to $12.7 million in the financial year 2011. This increase in revenues was primarily due to the $20 million milestone payment from Eisai for the inclusion of the data from the Phase III BLOOM-BM clinical trial in the FDA-approved prescribing information for Belviq. Post DEA scheduling of Belviq, Arena is expecting revenues of $65 million in milestone payments from Eisai, along with another $1.5 million additional regulatory milestone payment.

A $1.7 billion company, with a current ratio of 5.7 which makes it rank 64 out of 245 in the biotechnology sector places Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) in a decent position to deal with the expenses and revenue uncertainty for the coming year, as Belviq enters the market. Arena looks like a long-term winner to me, and I would rate it as a buy.
The article Have Drugmakers Found the Panacea for Obesity? (Part II) originally appeared on Fool.com.

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