Hapoalim Securities Reiterates Sell On Arena Pharmaceuticals (ARNA)

Hapoalim Securities is out this morning with a research report reiterating its Sell rating on Arena Pharmaceuticals

after the company did not impress the FDA with its weight loss drug, Lorcaserin. It has a $2 price target on shares. In the research note, Hapoalim writes, "As expected based on the reviewing documents, an expert panel voted 9 against and 5 for the approval of lorcaserin for obesity. The primary concerns were related to the potential safety issues, especially mammary cancer in rats, relative to weak efficacy. If the efficacy had been significantly higher for lorcaserin it is possible that the drug would have been recommended, but a relative weight loss <4% was not enough to impress the panel. We continue to assume that lorcaserin will receive a Complete Response letter and we reiterate our SELL rating." Shares of ARNA were halted yesterday during the FDA panel, and are down sharply in pre-market trading, losing 44% to $2.09.