Arena Pharmaceuticals (NASDAQ:ARNA) is a biopharmaceutical company currently focused on chronic weight management.
Insider selling during the last 30 days
Here is a table of Arena's insider activity during the last 30 days.
|Name||Title||Trade Date||Shares Sold||Rule 10b5-1||Current Ownership||Decrease In Ownership|
|Harry Hixson||Director||April 22||36,900||Yes||82,876 shares + 2,699 options||30.1%|
|Tina Nova||Director||April 14||35,000||Yes||18,728 shares||65.1%|
|William Shanahan||CMO||April 1||60,000||Yes||35,000 shares||63.2%|
|Donald Belcher||Director||April 1||1,905||Yes||68,728 shares||2.7%|
There have been 133,805 shares sold by insiders during the last 30 days. All these shares were sold pursuant to a Rule 10b5-1 plan. More details about the Rule 10b5-1 trading plan can be found from this link.
Insider selling by calendar month
Here is a table of Arena's insider activity by calendar month.
|Month||Insider selling / shares||Insider buying / shares|
There have been 775,471 shares sold, and there have been zero shares purchased by insiders since January 2013.
Arena reported the full-year 2013 financial results on February 27 with the following highlights:
|Net loss||$19.4 million|
The four insiders sold their shares after these results.
Arena's 2014 guidance is as follows:
|R&D expenses||$90.0-$98.0 million|
|G&A expenses||$30.0-$36.0 million|
Pipeline and upcoming milestones
Arena's key anticipated milestones for 2014 include the following:
|Belviq approvals outside of the United States|
|Completing the lorcaserin Phase II smoking cessation trial and the lorcaserin and phentermine pilot studies|
|Initiation of Phase II trials for APD811 and Temanogrel|
|Completing Phase I development of APD334 and APD371|
(Source: Investor presentation)
|Qtrly Rev Growth (yoy):||2.37||21.35||N/A|
|PEG (5 yr expected):||0.11||-0.36||-0.20|
Arena has the lowest insider ownership among these three companies.
Here is a table of these competitors' insider activities since January 2013.
|Company||Insider buying / shares||Insider selling / shares|
Only Arena has seen intensive insider selling during the last 30 days.
There have been four different insiders selling Arena, and there have not been any insiders buying Arena during the last 30 days. Three of these four insiders decreased their holdings by more than 10%. Arena has an insider ownership of 0.57%.
I believe Vivus could be the best pick out of these three weight loss companies currently based on the insider buying and a relatively low valuation.
Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in VVUS over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.