I don't think they will be bought*
They have entered marketing agreements in North America and Korea that would make them less attractive to a buyer. They just announced that they are looking for a dance partner in Europe. Any buyer is going to want to do their own marketing and keep all of the profits. They aren't going to want to be forced into a marriage with Eisia. All indications are that Arena is not looking to be bought, but are rather looking to grow themselves.
(*Unless Eisia buys them, which would be a good fit since they already have the North America contract).
This is since with me, because I think they have great upside potential.
For comparison sake, look at a company like VVUS. They have basically done nothing with Qsymia. They don't even have a large marketing group. They have the look of a company sitting at the bar waiting to be picked up. Of course, it's 2 a.m., they are still sitting at the bar and maybe coming to the realization that they aren't as attractive as they thought.
We all know Eisai can't bid unless someone else does. Pfizer & Eisai have co-marketing agreements on other drugs. It's not rocket-science. Pfizer has the cash; Eisai & Pfizer have worked together before. If someone ELSE gets there first, they've lost. Eisai would have US, but could be swayed to parting with the rights (for a price) if it was someone else.
The company would not like to be acquired; that is common. A PPS of $28 would be accepted by the shareholders. Maybe JL should have doen more barking about the PPS manipulation over the past 6 months?
chrisanja 10.28 premkt
Screw that. Note the article indicates that the average premium was 38%. Would you sell your shares for a 38% increase? Not if you owned at least a few thousand shares and know what you own.
Sentiment: Strong Buy
Every B.O. post gets the "Yeah, right treatment". I don't blame the scepticism; 99% of the time, it is foolhardy and a pipe-dream.
However, there are factors which point to a BO of ARNA.
1) Lack of their own blockbusters
2) Lack of potential blockbusters out there
3) Lots of M&A expected, as BP has gobs of cash
4) Relatively low buyin of $5-7B ($22-33 PPS)
Stop asking if ARNA management would accept this low price. The institutions which own 60% of ARNA would, in a heartbeat.
chrisanja $10.34 PreMkt
PS The "summer" or in "3 months" is too long. PPS could be $18 by then, with a buyout of $7-10B required. The time for BP to move is now... and yes, before a single pill has sold. Easai has done their analysis of projected sales, and so has Ildong. They know what the sales will be.
chrisanja 10.32 PreMkt