Make no mistake about it, don't delude yourself. This was a rejection. And this isn't coming from a basher, it's coming from someone who had lukewarm support of its being approved in Europe. If you don't believe me just read my prior posts. You don't withdraw an application unless you know that its about to be rejected.
This stock is very overpriced at this point, to say the least. Compare it to Vivus, a company that currently has its product on market (two products actually, including its ED drug Spedra, which was also recently approved in Europe) and its market price currently stands at 25% LESS than that of Arena. The stock price itself is irrelevant as Arenas shares are simply more dilute. That and the other takeaway from Friday is that Arena has essentially nothing in its own pipeline. If you like Arena, get out now and buy again after it finishes dropping. By all rights this stock should be priced no higher than $6/share at this point, and it may not be long before it is.