Those of you who follow my YouTube Videos know that I am bullish on Arena's long term chances, and predicted a massive sell-off of Vivus (VVUS) on its approval of Qysmia. Qysmia, a combination of the appetite suppressant phentermine and the antiseizure drug topiramate, will carry a warning about potential heart and birth-defect risks. The drug will also be very limited in its market share, with most sales coming via mail-order for Doctor Prescriptions.
Arena, in conjunction with its marketing partner Eisai Pharma, is scheduled to start selling its FDA approved anti-obesity treatment Belviq in early 2013.
While this drug alone will not make Arena a long term mega-winner, the revenue from its sales can be used to invest in the company's deep pre-clinical pipeline--where the real long term value of Arena might be:
APD811: An orally available agonist of the prostacyclin receptor is intended for the treatment of pulmonary arterial hypertension, or PAH. In December 2010, Arena initiated a Phase 1 clinical trial to evaluate the safety, tolerability and pharmacokinetics of single-ascending doses of APD811. The company believes the results of this early stage clinical trial suggest APD811 has the potential for once-daily, oral dosing.
APD334: A potential oral treatment for a number of conditions related to autoimmune diseases, including multiple sclerosis and rheumatoid arthritis.
APD371: For the potential treatment of pain. The analgesic effects of CB receptor agonists are well established in the scientific literature.
GPR119: A novel pharmaceutical target for discovering orally available small molecule agonists for the treatment of type 2 diabetes.
Temanogrel: An inverse agonist of the serotonin 2A receptor intended for the treatment of arterial thrombosis and other related conditions has completed Phase 1a and Phase 1b clinical trials.
In my opinion, if Arena can get the first weight loss drug approved since 1999, the company can get others approved in time as well. It takes money to make money in business, and I believe Arena has just begun its trek into becoming a potential long term mega pharma.
