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  • What Lies Ahead For Arena Pharmaceuticals? [View article]
    Did you comment only after reading my comment or did you also read the article? If you did not read the article and only commented after reading my comment then I have nothing to say to you.
    Jan 7, 2014. 12:31 PM | 1 Like Like |Link to Comment
  • What Lies Ahead For Arena Pharmaceuticals? [View article]
    Kindly read the article carefully before commenting. Refer to the heading "The Risk: Great Ideas, Low on Cash". The upfront payment is mentioned there. It feels like not the article but the comment is erroneous.
    Jan 7, 2014. 09:40 AM | 1 Like Like |Link to Comment
  • What Lies Ahead For Arena Pharmaceuticals? [View article]
    m_yossi

    I am suggesting to stay away from Arena for some time and see how the sales play out in next year. I do not think it will triple within next year.

    I am not suggesting to short it. I believe they might have to raise money after next 12 months, if the sales do not pick up substantially.
    Jan 7, 2014. 05:25 AM | 1 Like Like |Link to Comment
  • What Lies Ahead For Arena Pharmaceuticals? [View article]
    Hello All,

    Following is the reply to all your comments:

    First of all under the heading "The Risk: Great Ideas, Low on Cash" I explicitly state in my article that Arena has cash and equivalents of $180 million. So I know how much cash they have.

    I am also copying the company's CEO's quote along with the source with further explanation to the comments.
    "We have accumulated a large deficit since inception that has primarily resulted from the significant research and development expenditures we have made in seeking to identify and validate new drug targets and develop compounds that could become marketed drugs. Notwithstanding the recent US launch of BELVIQ and related payments received and expected from our collaborators, we may incur substantial losses for at least the short term as a result of manufacturing and commercializing BELVIQ, conducting required post-marketing and other studies of BELVIQ, seeking regulatory
    approval of BELVIQ outside of the United States and advancing other of our current and future compounds and drug candidates."

    Source:
    http://bit.ly/JE3TH5

    There was no factual mistakes in the article. My article explicitly stated that the company has cash and equivalents of $180 million. But I believe that this amount is not sufficient to fund Belviq related and other drugs related expenses and they might need to raise debt or equity financing given its robust balance sheet. Whatever positive contributions have been made is due to the single
    positive EPS that was earned in the quarter that ended June. This cash is sufficient to fund operations for at least the next 12 months.
    Nonetheless, Arena’s short-term operating expenses will be substantial as it continues to fund BELVIQ-related activities and at the same time selectively advances certain research and development trials.

    Over the long term, Arena needs substantial cash to achieve company objectives of discovering, developing and commercializing drugs. The process typically takes many years and potentially several hundreds of millions of dollars for an individual drug. Arena may not have adequate available cash or assets that could be readily be turned into cash to meet these objectives at the moment. Given these circumstances I believe that the debt or equity financing can likely be an option in the coming years. In addition, I have based my opinions on the facts addressed by the CEO in the conference call and no cash cow status has yet been assigned to the company as far as I am informed. In addition, I would appreciate if the counter opinions can be presented in the form of article with sources as I am curious how the two funds, if exist, will aid the company with its current and future drugs other than Belviq.
    Jan 6, 2014. 02:16 PM | 1 Like Like |Link to Comment
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