Since Arena Pharma (ARNA) announced the public offering of 11,000,000 shares of its common stock, offered at a price to the public of $5.50 per share, the pps has appreciated over $1.00 higher, closing last Friday's trading session at $6.62 Up 0.20(3.12%).
The gross proceeds to Arena from this offering came in at $60.5 million, before deducting underwriting discounts and commissions and other estimated offering expenses payable by Arena. Arena has stated it will use these proceeds to get ready to market Lorcaserin, the company's controversial weight loss drug, which I expect to receive approval from the FDA on or before the June 27th PDUFA date for Lorcaserin. The FDA stated the weight loss passed FDA standards for efficacy and the drug did not have cancer risks based on clarifications in the data. The advisory panel recommended that post marketing studies regarding potential heart valve issues be completed by the company.
Basically, Lorcaserin may gain approval at any time between now and June 27th, so I would not recommend anyone hold the stock short, as you will likely be burned for doing so. Arena has begun to make the transition from a developmental pharma to a full