Hapoalim Securities Doesn't See Strong Future For Arena Pharmaceuticals (ARNA)

Hapoalim Securities doesn't see a light at the end of the tunnel for Arena Pharmaceuticals, Inc. ARNA in the near future. It lowered its price target to $1.50 from $2 and is reiterating its Sell rating. In a note to clients, Hapoalim writes, "Arena intends to request a Type A meeting with the FDA to clarify its requests, and, if the meeting is granted, the FDA's guidance states that it should occur within 30 days of the request. Because the path forward for lorcaserin will need to be negotiated with the FDA, the time required to re-file the product and for an FDA to render a decision is uncertain. In a best case scenario, Arena currently has the data necessary to re-file lorcaserin and once the data is re-analyzed the product could be re-filed by the end of 2011. In a middle-case scenario, Arena will need to perform additional animal studies and the product could be re-filed in 2012. In a longer-case scenario, Arena will need to run additional human studies and the re-filing of lorcaserin could be delayed two to four years." Shares of ARNA are up 4 cents to $1.67 in early morning trading.