Arena Pharmaceuticals Reverses Rally, Trading Lower
Shares of Arena Pharmaceuticals (NASDAQ: ARNA) have been volatile in recent sessions, as the FDA is set to make a decision on the company's weight-loss drug Lorcaserin on June 27. On Friday, shares traded down as much as 34% at one point, before finishing down more than 15%. Despite the pullback, ARNA has been one of the hottest stocks in the market over the last 3 months, jumping more than 295%. Over the last year, ARNA is up nearly 627%. On Monday, the stock opened lower and immediately started heading higher.
The early rally, however, has reversed itself and at last check, ARNA was trading down a little more than 3% to $9.56. Analysts at BMO Capital Markets downgraded Arena from Outperform to Market Perform this morning, saying that FDA approval for Lorcaserin was already priced into the stock. The firm is maintaining their $10.00 price target on the stock, but wrote that "with ARNA shares trading at our target price we believe the stock is fully valued and pricing in timely approval."
Arena Pharmaceuticals, Inc. (Arena) is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs that target G protein-coupled receptors (GPCRs), in four therapeutic areas: cardiovascular, central nervous system, inflammatory and metabolic diseases.
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