Arena Pharmaceuticals Falls 40% On FDA Rejection (ARNA)

A federal advisory panel has rejected Arena Pharmaceuticals ARNA weight loss drug lorcaserin on concerns the drug didn't work well and also carried potential safety problems. The advisory panel voted 5 to 9 against the drug. Essentially, the panel's vote amounts to a recommendation that the FDA not approve the drug. Although the FDA is not required to follow the panel's advice, it usually does. In a statement, Jack Lief, Arena's chief executive said, "Arena and Eisai believe that lorcaserin has a positive benefit-risk profile. Arena will work closely with the FDA as the agency completes its review of the lorcaserin new-drug application." In the after-hours trading session, ARNA has just re-opened for trading and the stock has fallen almost 40% to $2.30.