I'm suggesting layoffs if their revenue doesn't improve, whether Belviq sales, partnership agreements or whatever. Didn't Arena have to give back a lot of money to Eisai due to poor Belviq sales? That's not good. I'm invested here to make money and if that can happen without layoffs fine. Otherwise, let them happen-I'm not here to pay someone else's mortgage payment. Fact of life in pharma. Been there-twice.
They need to start saving NOW to prevent a crunch later. The longer the better as far as runways are concerned, although Arena is acting more like Korean pilots landing at SFO. I don't like layoffs, but the company is too big for their revenue stream. Time goes by quickly. They need to partner, so let's see management earn their keep and get some partners. Maybe WS and institutional investors will like the stock better if they do.
Yes they do. Look at Aveo, they had several massive layoffs to preserve capital and give them a couple of years to push their drugs forward. Difficult, but Jack or a new guy needs to do it. Yahoo says Arena has 300+ employees, way too many with their revenue stream. That's reality.
I have a leftover ETrade account from my stock option days that has about $750 in it. I was thinking of trying to do something with it using some low cost biotech trades. Ideal would be one beaten down (to a dollar or even less), but with enough cash to make it a year or two. Since I also own Arena, let's avoid those with little institutional interest or huge floats. Something like LJPC or BCRX would turn $750 into a decent amount in a short time. I was thinking AVEO, missed the recent run to $1.80 from low $1s, now down to the $1.40 range again. Who has an opinion?
But the conditions of the planned sales are pretty flexible. You can pick a date to sell on (or multiple dates), pick a target price, and even put in a sell order that is tantamount to a stop loss. I had a 10b5 once that had several lots of options that I set various limit orders on. In one case, some options were due to expire during a blackout and I set up a clause allowing a market order right before they were to expire, so I would at least get something out of them. It sounds like JL picked a certain date to sell on. It might have behooved him to look at the calendar first, whether he anticipated Belviq would be selling well by now.
Or he might see the writing on the wall. Might be pressure for change from BOD and institutions. He's kind of old to be running the company anyway.
Speaking of prearranged trades, Jack would have been much smarter to have sold smaller numbers of shares over months in his 10b5 plan, instead of a large block, if he cared about appearances. Hopefully it's a sign he's leaving though.
And, sad to say, the new CEO will need to do some staff reductions to align the company with fiscal realities-that's the way of pharma. Been there.
He would be violating a lot of laws and facing years of lawsuits in his old age. Hopefully we won't see any class actions coming from all this. I'm hoping Jack is leaving and that is the real reason for the sale. Usually you have 3 months after you leave to exercise options, so he may be setting up for that. If he is leaving, I hope they have a new guy (or gal) lined up that WS likes. I've seen what a liked CEO can do when times are bad. Does anyone know if Jack spends much time on the road trying to drum up institutional support for the stock? Radio silence seems to be his guiding principle.
I'm not sure what to think of your Belviq/brain theory, but as for 'insulin wraps itself around the cells', insulin actually interacts with a cell surface receptor to lead to its effect on glucose uptake by cells. Resistance could be caused by various things, among them downregulation of the receptor due to overstimulation by too much glucose and thus, insulin.
Ironically, in the drug biz it's better to have nebulous benefits if you want big sales. Statins measurably lower cholesterol and you MIGHT not have a heart attack, or Plavix MIGHT prevent a heart attack by inhibiting platelet aggregation, assuming you are a responder.
You made a general statement about GPCRs, which are targets of a large percentage of marketed drugs. By the way, a lot of focus in pain is on ligand gated ion channels,not GPCRs.
Yep, 300+ employees, most of whom are likely making $100K plus without including benefits. We are paying for all that, so there should be a few expectations. Layoffs are the name of the game in pharmas with too high a burn rate or that aren't delivering. That's the way it is.
That is true. I've seen firsthand what a CEO that Wall Street 'likes' can do, vs one they don't.
Maybe, but Vivus doesn't need a factory to make two generics. Only the formulation work needs to be dealt with. Of course, Vivus is on the hook for all expenses related to Q, but I'm sure that's trivial-right?
Aren't Phen and Top generic commodity products with their own specs and C of As? Seems like they won't have impurities unless they introduce them in the formulation step.
You are right about that. I'm still kicking myself for not putting my dream kitchen in when the options I had were worth a lot.