With milestone payment from Eisai, would a company ever consider a share buy back of a small number say 10 million. Just to show some stability.
Also with regards to sales, I don't expect to see any sales for 6 months that have an impact. We can't expect sales to pop right out of the gate
Right now I cannot see that happen whereby Arena will do a share buy back out of their milestone payments. What I do see happening in a few years Arena doing a two for 1 split due to demand for shares, it happen all the time.
Sentiment: Strong Buy
The fact is most doctors wont prescribe a new medication for 6-12 months after being released due to keeping their patients safety in mind. Doctors many times wait to see if any new complications come out from any new type of medication. Im sure sales will be good 12-18 months from now but until then they may not meet street expectations.
That is false johnsonshawn. I have been a part of launching 25 plus new products in my career and in a 5 county territory with nearly a thousand primary care, internist, and specialty physicians and only 3 doctors i know of wait consistently to perscribe a new drug. Your statement of "most physicians will wait" is wildly exaggerated.
Johnson---some will wait for others to test drive it, but the majority will move forward under the umbrella of the FDA approval! Your not totally wrong---just over stating the impact of your premise!
I doubt it will occur.......... a 10 million share buy back would chew up the milestone payment and then some. Also, it would not do much except eliminate cash better used on continued R&D of the pipeline and normal operating expenses. Can't see how that would demonstrate stability or good sense for that matter.
Its something you could actually see down the road if sales of Belviq really fly and the money really gets rolling in, but I don;t think you will see it off this 65M payment.
Not enough cash on hand even with the milestone to do that IMO. Plenty of cash to do what they have to do though and are responsible for!T hey have plans for their other drug candiates and manufacturing to run and a small responsibility in post marketing work for Belviq.
Maybe someday when their booty of cash is higher?