After FDA approval of its obesity drug, the biotech now awaits a DEA letter and the final decision from the EMA.
Pharmaceuticals continue to be a strong point for the health care sector. Since the approval of its the obesity drug Belviq, Arena Pharmaceuticals (ARNA -0.60%) shares have lived up to the saying “Buy the hype and sell the news.”
Leading up to the Food and Drug Administration’s first OK for a weight-loss drug in a lucky 13-years, the small-cap biotech’s stock moved from $2 in May to an intraday high of $13.50 on June 27, the day of the approval.
Since then, shares have fallen and traded as low as $6.95 in early August. Today, shares stand a little taller than $9. The whipsaw action could leave shareholders bit confused about what to do next.
The good news for investors is that Arena has a few catalysts that could drive the stock higher in the next 90-days.
