Arena Pharma narrows 3Q loss as testing costs fall

Arena Pharma posts smaller 3Q loss after finishing late stage tests of obesity drug lorcaserin

• On 8:48 am EST, Tuesday November 10, 2009

SAN DIEGO (AP) -- Arena Pharmaceuticals Inc. on Tuesday posted a smaller third-quarter loss following completion of clinical testing of its obesity drug candidate lorcaserin.

Arena said it lost $34.8 million, or 38 cents per share, compared with a loss of $56.2 million, or 76 cents per share, in the same quarter last year.

Revenue rose to $2.6 million from $1.9 million.

Thomson Reuters said analysts expected a loss of 34 cents per share and $2.4 million in revenue.

Arena has reported results from two late stage clinical studies of lorcaserin in the last few months. The company said its next priority is filing for marketing approval with the Food and Drug Administration. During the third quarter, the company's research and development costs dropped to $22.1 million from $47.5 million.

The company had about 91 million shares on the market, on average, during the third quarter. That compares to 73.9 million in the third quarter of 2008.