I don't think the company is going to go under. And while some would say this CC was good, others would say it only confirmed their concerns and frustrations... What really matters more then the CC is how well Belviq sales move forward going into next year. Belviq was always going to be the cash flow to move the pipeline forward and so far that has not happened.. That is the keystone to Arena's short and intermediate term outlook.
If it turns out that a money raise is in fact needed, it won't be the end of the world and it won't be the end of this company. More then one way to raise money and not all of them dilute shareholders.
With that said we are still in the 2nd quarter of this game a we have plenty of options moving forward and many developments on the way. The key will be how management addresses them. Will they stay on the path they have chosen with their heads in the sand hoping the pipeline yields great results and a partnership with new cash, Belviq sales increase with the new Bel Phen data and upcoming smoking trials which bring in more revenue. If either of these do not happen will they do a debt deal, an equity deal, and private placement... Many out cards still available.
So, Jack, I want to jump right in here and ask you about the Eisai launch. Do you view the BELVIQ launch as disappointing and how would you characterize Eisai’s efforts this year and relationship as a whole?
Jack Lief stated the following Thanks, Ted. So, viewed in retrospect, of course, I think, the launch in the last 18 months have not leaved up to some of the investors expectations. Certainly, the forecast were overly optimistic and now as you said, Eisai is making some traction to move forward.
Clearly Arena made the same assumptions that investors made and had high expectations evidenced by them upping expenses more then 50% to expand the pipeline. Over 300 employees sucking cash and benefits out of our once strong cash position. The mismanagement was not cutting those expenses back and slowing the pipeline down to conserve cash when it was clear everyone's expectations including theirs was wrong and this was going to take a little longer. This is a mistake bad management makes over and over, they do not adjust or react quickly to market conditions and top line results.
This alone is reason to blast management and the BOD, they have violated their fiduciary responsibility. The plan was always to use the cash flow from Belviq sales to move the pipeline forward and when Belviq failed to provide that cash flow they should have cut employees and decided which drug to move forward first. This has put the company in a very bad position and Wall Street has been waiting with baited breath for this money raise. CS called for a money raise in 2015 and a 4.00 price target and we all were shocked, thinking no way. Well now it looks like they may have the second part of that prediction correct as well. We will have to wait and see how well this weight loss season goes to see how much of the cash burn revenue can offset.
I sure hope many of the longs here make it to the next shareholder meeting and voice their concerns and opinions...
All I was able to hear and read was a question and answer session, I have not read or listen to any presentation for PJ.
Go look at the date I posted and the date the smoking data and the Bel Phen data were released and try again.
What are you talking about we got the Bel Phen and Smoking data released very shortly after that was posted.
"I don't think so, I sure hope this year is better then last year, you guys dropped the ball big time" "a lot of moving parts out of our control got in the way, we are going into this year with our eyes open and it will be different then last year, wait and see"
I think the free sample program is going to help a lot as well.. Instead of having to go and register after they leave their doctors office, they can take a 1 week sample home and try it...
You and Jack are just alike, you can't admit when you are wrong, you spin stuff to make yourself look good when you have done nothing. You did not know he was going to make that statement and that statement is not a game changer and will not cause the longs to be happy. That presentation is a warning shot, they don't know what they are going to do if Belviq sales do not pick up...
They did not say, well if sales do not pick up we will cut expenses and pipeline development back to save cash. They did not state any plans, goals or ideas. Just restated the burn rate. Can you say SAFE HARBOR statement.
We are not buring 30-35 million, that is our spend, we have revenue to offset that burn and by 2nd quarter of 2015 that revenue could be 1/2 of the burn rate with a good weight loss season and more doctors coming on board with the Bel Phen data. We would also pick up some additional milestone payments, additional partners for pipeline drugs are going to come but only after we get really great Phase II results and start moving forward with Phase III studies.
I will not argue with you tho, the shot went right across the bow of my portfolio and did not like it.
Because any person with half a brain already knew this. This error and mistake has been baked into the share price for a year. It does nothing for this company and you had no insight or news that this statement was coming. In fact, read my response up above.
If anything this presentation hurt the company more then helped it.
Stop your krapola, this is not a big turning point. And the fact that Jack took 18 months to come out with that statement shows he is a coward. He can't take the heat or the criticism. It actually was bad when you consider the questions regarding the cash on hand, the cash burn and their plans.
That is not the news you were talking about, stop spinning your krapola... You are manic vadar, first you are long then you are short then you are long again. Seek help.
WHISPERING: Big Tuesday news ON TAP, Stockvadar-whistles
Premarket tomorrow there's going to be a lot of very happy longs.
-sv (STRONG BUY)
You noticed that as well, did not make me feel all warm and fuzzy when the guy in charge of the money can't tell you anything but what was forecast to be spent every quarter. That was a red flag to me, reenforcing the burn rate with no comment on what they plan to do.
These morons are going to go to the well again. I did not believe it for the last 18 months. I thought that Belviq would generate enough cash flow to pull us out after one good weight loss season and the Bel Phen data. But the way he answered that question has me very concerned right now. No strong statement like Cindy made. We have enough cash to execute our business plans for the near future....
Jack Lief - Chairman, President and CEO
Thanks, Ted. So, viewed in retrospect, of course, I think, the launch in the last 18 months have not leaved up to some of the investors expectations. Certainly, the forecast were overly optimistic and now as you said, Eisai is making some traction to move forward.
The Q and A was not bad but I wanted to listen to the actual presentation.. I was sure it would be the same dog and pony presentation but I was hoping for more insight into the smoking and NASH plans.
I went to SA and to the events section on Arena. All they are giving us is the question and answer periods right now....
Arena's CEO Presents at Piper Jaffray 26th Annual Healthcare Conference (Transcript)
Dec. 2, 2014 11:50 AM ET | About: Arena Pharmaceuticals, Inc. (ARNA)
Q - Ted Tenthoff
This is the start of the transcripts posted at SA and if you start the presentation it also starts at the Q and A periods.
Go to the Arena web site and click on listen. It started with a questions and answer period. I am no liar. I had a small amount of time to catch up on the presentation and all I am getting is the Q and A.
After you go see that I am telling the truth you are welcome to post here that I was in fact not lying and if you are man enough you might even say you were wrong for saying that.
I will go check the transcripts.
Did this presentation start with questions and answer period or are we missing the entire presentation? This seems to be a scripted question and answer period designed to highlight all of the good points and points of concern.