Market Overview

Arena Upgraded, Analyst Sees 44% Upside

Share:
Arena Upgraded, Analyst Sees 44% Upside

With phase 2 results expected to be released in the near future, JMP analyst Jason Butler upgraded his rating on Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) to Market Outperform with a $27 price target.

“We believe the stock’s current valuation under-appreciates the potential for clinical and commercial success of either of these assets (Ralinepag in pulmonary arterial hypertension and strasimod in ulcerative colitis),” Butler said.

Ralinepag Has Performed Well Compared To Its Competition

“Ralinepag has demonstrated a superior preclinical profile to selexipag. Preclinical and early clinical studies have shown that ralinepag has the potential to be the best-in-class oral prostacyclin agonist. The drug is more potent than other oral nonprostanoid prostacyclin receptor agonists and has a superior pharmacokinetic profile, including lower Cmax, reduced peak-to-trough ratio and potential for once-daily dosing,” Butler noted.

This pushed Butler to believe ralinepag could be the best oral prostacyclin agonist for the treatment of pulmonary arterial hypertension.

Arena Has Even More In Its Arsenal

Arena has a couple of other strong assets in its portfolio. Specifically, Butler highlighted Etrasimod, which he sees Arena accelerating its time to market.

“We believe Arena’s focus on these orphan indications for etrasimod can accelerate development timelines and provide a differentiated commercial opportunity vs. other S1P1 modulators. “

He also stated how Axovant Sciences Ltd (NYSE: AXON) is developing nelotanserin, a drug developed by Arena, and that Arena might be able to receive royalty payments and milestones from this product.

Related Links

Arena Pharma Could Be Developing Several Best-In-Class Agents

6 Biotech Stocks Jefferies Says Are Undervalued

Latest Ratings for ARNA

DateFirmActionFromTo
Apr 2019MaintainsOutperformOutperform
Dec 2018Initiates Coverage OnBuy
Nov 2018MaintainsOutperformOutperform

View More Analyst Ratings for ARNA
View the Latest Analyst Ratings

Posted-In: Jason Butler JMPAnalyst Color Upgrades Price Target Analyst Ratings Best of Benzinga

 

Related Articles (ARNA + AXON)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
ELMDDougherty & Co.Initiates Coverage On12.0
MRNSCantor FitzgeraldAssumes7.0
MNRLCapital One FinancialInitiates Coverage On23.0
SONVertical GroupUpgrades
UNPMorgan StanleyMaintains136.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Elon Musk's 100-Day Bet To Build The World's Biggest Battery Starts Now

The Market In 5 Minutes