Found this on the Schwab site. Interesting article from StreetInsider that reports that DEA classification is slated for April. They also note that Belviq has "yet to catch on with patients". No guff, it hasn't even gone to market yet. They also note that Belviq is a "less effective medication" and quote the same abbreviated statistics that would leave one to beliee that Belviq is substantially inferior to Qsymia.
I'm an ARNA long and question the content of this article and wonder why it was issued at such a critical time for ARNA. Seems to indicate, to me anyway, that scheduling is eminent, because I've grown to distrust Wall Street and "objective" reports such as this one. Anyway, I thought share it, for what it is worth.
Also, does anyone else find it quite odd that the number of shares of ARNA that are shorted is as high as it is, given the number of impending catalysts?
Arena (ARNA), VIVUS (VVUS) Face Uphill Obesity Battle as Costs Play Key Role
6:57 AM ET, 03/21/2013 - Street Insider
Arena Pharma (Nasdaq: ARNA) and VIVUS (Nasdaq: VVUS) are fighting the good fight. For profits.
Since the two received FDA approval for their respective obesity pills, Belviq and Qsymia, respectively, the drugs have yet to catch on with patients. Qsymia prescriptions are down 22 percent from a top hit on February 8th, which Belviq is yet to go on sale in the U.S. until after the DEA classifies its ability to be abused, a decision that is slated for some time in April.
One analyst thinks the sales force behind Qsymia is doing it wrong. Instead of marketing to family practitioners, which write the most prescriptions, the team is marketing to specialists. They are going for patients willing to make a lifestyle change rather than just looking for a quick fix.
Price may also be an issue with Belviq running about $200 per month -- about 48 percent more than Qsymia -- and many are unsure how much of that will be covered by insurance. That makes reimbursement a key driver for both companies moving forward.
Arena's Belviq is also a less-effective medication. Studies into approval had those on Belviq losing 3 percent more of body weight versus a placebo. VIVUS Qsymia showed patients losing 6.7 percent and 8.9 percent of body weight for mid- to high-dose regiments versus a placebo.
Belviq is also indicated more for overweight people with another existing condition related to obesity, such as Type 2 diabetes or high blood pressure. The drugs aren't meant to help those with chronic conditions.
Given that insurers are looking at the medications more as cosmetic rather preventative, the fight for better reimbursement appears to be an uphill battle. Traders are taking notice, with about 30.5 percent of VIVUS float and 27 percent of Arena float being held short at the end of February, both up from prior semi-monthly readings.
VIVUS is flat early Thursday, while Arena is indicated lower.
