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Biotech Analysis Central Preview Series: Arena Pharmaceuticals

Dec. 13, 2021 10:23 AM ETPFE, UTHR
Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

This is a preview blog series on what you can expect when subscribing to my "Biotech Analysis Central" service marketplace. For the full article you must subscribe to my service. This is just an intro of two snippets on the research articles that are written. Thus far, there are about 300+ research reports on both both small-cap and mid-cap biotech stocks with full analysis of the pipeline, catalysts, financials, and clinical trial analysis. If you want to read more then please subscribe to my marketplace service. As always I offer a 2-week free trial just to show you how helpful my service is. You can cancel anytime before the 2-week free trial is up and never be charged a dime.

First Section Of Marketplace Article (This article piece was originally written on November 23, 2021)

For this Biotech Analysis Central Update Series I wanted to go over a biotech by the name of Arena Pharmaceuticals (ARNA). The reason why I want to go over this biotech again is because it has built a big solid pipeline. It has its pipeline separated into several different categories. Such categories are Gastroenterology, Dermatology and cardiovascular. The thing is that a very strong drug known as Etrasimod is being used to target 5 different indications. This is split up into targeting some indications for Gastroenterology and then other indications for Dermatology. The thing is that I believe there is a chance that the biotech may be in tune for a monumental year approaching in 2022. It has several data readouts, which of course are very risky but at the same time can be major catalysts for the stock itself. You have readouts from two phase 3 studies using Etrasimod for the treatment of patients with Ulcerative Colitis. You also have a data readout from the phase 2/3 part A CULTIVATE study expected then also. This study is using Etrasimod for the treatment of patients with Crohn's Disease. Etrasimod is also being explored in a phase 2 study in patients with Alopecia areata, which has a readout in 2022 also. Another good thing about this biotech is that it has already partnered out a strong drug by the name of Ralinepag, which was developed by Arena for the treatment of patients with pulmonary arterial hypertension (PAH). The partner goes by the name of United Therapeutics (UTHR). It was a huge deal and I will be going over that below. But it brought upfront hundreds of millions of dollars for the drug and is currently in phase 3 testing.

Conclusion Of Marketplace Article

The Final Verdict is that Arena Pharmaceuticals is a good long-term biotech to own. It has multiple data readouts that are expected in 2022, which if highly positive, could help move the stock higher. I acknowledge that not all studies may end up being successful. For example, the use of Etrosimod for Atopic Dermatitis is about to be explored in a phase 3 study. The phase 2 study didn't deliver on the primary endpoint over a short period, but ending up doing better over a longer period of time from an extension study. Some studies may not play out well, but with so many shots on goal, only one program needs to be highly successful. Even then, you have to consider that Ralinepag is a strong drug that has already been partnered out with United Therapeutics. I believe that Arena with that drug alone should be able to keep its doors open. The other shots on goal in the pipeline can only help.

Analyst's Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours.

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