Arena Downgraded To Neutral

Arena Pharmaceuticals, Inc. ARNA had the FDA AdComm panel for Lorcaserin vote 5-9 against approval, owed largely to carcinogenicity concerns in light of the modest weight loss benefit, approval now pushed for at least three years, maybe even to 2015, Piper Jaffray reports. Piper Jaffray has downgraded Arena to Neutral, and the discount rate has been increased to 40% (from 20%). Price target has also been lowered to $1.50 (from $10). Arena Pharmaceuticals, Inc. closed yesterday at $3.74. Click here to get trading ideas that could bring you a 100% return.