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Arena Pharmaceuticals, Inc. Message Board

  • briveadus1 briveadus1 Jan 15, 2013 8:29 AM Flag

    Arna Buyout

    Big Pharma is in need of new products. Arna will be bought out before the summer for $32 per share. Save this post.

    Sentiment: Strong Buy

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    • 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.

    • 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

    • $32? Your crystal ball is made of cloudy plastic. Surely the price is really going to be $32.37451.

    • I half agree with you. They will be bought out at $65 per share.

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