That hit piece in Forbes was written by some loser called "Narrative Science" a no name who appeared and disappeared like a fart in the wind.
Pfizer may very well grab Eisai and Arena. They paid $82 billion to Warner-Lambert for Lipitor and Belviq has potential to treat 5 times that population in obese, diabetics, and cardiac patients, and smokers.
Eisai's relationship with Pfizer mirrors Warner-Lambert's realtionship with Pfizer to the very last detail. Warner-Lambert snagged for a cool $82 billion by Pfizer. It all starts with a request for Pfizer to market certain drugs.
As you can see, Eisai carefully plans its acquisitions and spaces them as needed. As you can see, Eisai is long overdue for an acquisition. With Eisai nailing down RoW, it is all but a done deal. Now listen carefully here. Eisai is very very friendly with Pfizer and it is certainly possible for the whale to swallow whole a fish like Eisai and a minnow like Arena.
Yeah Eisai knows nothing but Cramer, Fartstain, and Spencer do. Eisai loves gobbling up micropharmas like Arena. Look at my previous posts regarding important information on Eisai and realize that they are due to acquire yet another pharma soon. That is their pattern.
This is very important as indications for Belviq will expand and address the biggest causes of morbidity and mortality in our civilization today. Diabetes. Cardiovascular disease. Smoking and complications thereof.
Very important information on Eisai and their motives here.
I want everyone to remember one thing here. Pfizer and Eisai are very very friendly! Arena is the #1 acquisition target with its patents!
Eisai has Aricept and Lyrica. Marketing relationship with Pfizer will now continue until 2022! I am happy to see that we are one step away from being swallowed whole by the whale. Pfizer is desperate for new technology. Bye bye Lipitor, Bye bye Viagra. Hello Belviq for treatment of obesity, diabetes, cardiovascular disease, and tobacco use. Hello Arena for its enviable patent portfolio.
"Our continued partnership with Eisai is a testament to Pfizer's commitment to help patients suffering from Alzheimer's disease," said Jeff Kindler, Pfizer Chairman and Chief Executive Officer.
Warner-Lambert gobbled up micro pharmas about the same size as Arena and bigger. In fact, In 1976, Warner–Lambert took over Parke-Davis which was followed by acquisitions of Wilkinson Sword in 1993 and Agouron in 1999. And guess what! The big whale Pfizer came by and swallowed them all whole with an $84B bid.
That's what I get if I loan out my shares. Shorts pay about double that and then some.
QCOR with about $250M is cash has a market cap of about $3.5B right now. Granted their revenue stream is much greater but regardless, milestone payments are free unearned cash that comes with no overhead.
Again, I emphasize ARNA should have a market cap of $2.25B or $10.25 per share. Sheesh! VVUS currently at $1B with $350M in debt, no cash, no partner, no future.
Soon reality hits without warning.
ARNA at this moment should have a market cap of $2.25B or $10.25 per share with $250 million in cash and no debt at all.
that will come when a buyout offer is on the table.
Again $250 million in cash, in bank from milestone payments mean nothing. Shorts are so smart!
Arna back to $10 on this news shortly. Selling down to $4 completely overdone.
What is important to understand for the retail investor is this. Eisai loves acquisitions people!
Nihon Eisai Co. Ltd. was established in 1941. In 1944, merger with Sakuragaoka Research Laboratory resulted in creation of Eisai Co. Ltd. The American subsidiary of the company, Eisai Inc., was established in 1995.
In 1996, Eisai received approval from the United States Food and Drug Administration (USFDA) for Aricept (donepezil), a drug discovered in the company's labs and co-marketed with Pfizer. Three years later in 1999, the company received USFDA approval for Aciphex (rabeprazole), a drug co-marketed with Johnson & Johnson.
In September 2006, the company acquired four oncology products from Ligand Pharmaceuticals.
In April 2007, Eisai acquired Exton, Pennsylvania-based Morphotek, a company developing therapeutic monoclonal antibodies for the treatment of cancer, rheumatoid arthritis, and infectious diseases.
In December 2007, Eisai acquired MGI Pharma, a company specializing in oncology, for $3.9 billion USD. This event brought Dacogen (decitabine), Aloxi (palonosetron), Hexalen (altretamine) for ovarian cancer, and the Gliadel Wafer (carmustine) for brain tumors into the Eisai product portfolio.
In 2009, Eisai received the Corporate Award from the National Organization for Rare Disorders (NORD) for the development of Banzel.
They are long overdue for their next acquisition. Guess who? It all starts with US and RoW rights to sell Belviq.
So happy it costs Arena literally pennies per pill to manufacture. 10 year tax holiday is the frosting on the cake.
I bet it will go up further as shorts scramble to find shares so that naked positions can be covered and not at market.
Where are the upgrades? Oh I forgot. Free cash in the form of milestone payments don't count. This is the only instance where cash really isn't cash for Wall Street thugs.