Published on April 18th, 2017 | by itadmin
Arena Pharmaceuticals Posts Q4 Results That Miss Estimates
Arena Pharmaceuticals, Inc. (ARNA) recently posted their financial results for the fourth quarter of the 2017 fiscal year, as well as for the entire year that closed on the 31st of December, 2017. The company’s results missed analyst expectations for Q4.
Thus, the company posted revenues that worked out to a total of $9.2 million, which were lower than analysts had expected, namely $10.36 million. However, the figure was higher than the same quarter of the previous year, when the company posted revenues of $7.44 million.
The revenues figure that was reported included net BELVIQ sales of $3.8 million, of which $0.6 million were attributable to redemptions of a 15-day free voucher and product samples while $3.2 million were attributable to 31.5 percent of net product sales of Eisai.
The company generated a net loss of $32.1 million in the fourth quarter, which worked out to a loss per share of $0.15. This was higher than analyst expectations, who had estimated a loss per share of $.012. The company posted a loss per share of $0.11 during the same quarter of the previous year.
General and admin expenses came in at $8.9 million, while expenses for research and development amounted to $27.8 million.
At the end of December, 2017, the company had $163.2 million in cash and cash equivalents.
During the first quarter of the 2017 fiscal year, Arena Pharmaceuticals obtained $100.7 million by selling 21 million common shares to underwriters at a price of $4.8319 per share.
Jack Lief, the Chief Executive Officer of Arena Pharmaceuticals, stated that 2017 was a critical year for the company that had been marked by an increase in BELVIQ sales and the progress made in a series of development programs. He stated the company had obtained impressive results from clinical trials from their pipeline of GPCR drug candidates that had been discovered internally, including for their programs for the management of the lorcaserin lifecycle. In 2017 and after, Lief stated they were planning on improving the momentum by being aggressive in their pursuit of promising opportunities to develop new drugs on an internal basis as well as via collaborations with other companies, while making sure to keep supporting patient advantages through BELVIQ.
Arena Pharmaceuticals did not provide guidance on revenues for 2017 nor did they offer estimates on sales for the first quarter of the 2017 fiscal year.
The company, however, is expecting their R&D expenses to come in between $114 million and $122 million for the entire 2017. This would include non-cash costs of around $13 million as well as $6 million in costs that Eisai will reimburse. The reimbursed costs are included as revenues.
Arena Pharmaceuticals was trading at $4.19 during after-hours trading, which indicates a 2.08 percent drop. The company has been trading between $3.26 and $7.24 per share over the past 52 weeks. Arena Pharmaceuticals has a market cap of $987.06 million.