Coverage of the shares of this pharmaceutical company were just initiated at Berenberg, with a ‘Buy’ rating.
Arena Pharmaceuticals, Inc. (ARNA)
From Cabot Stock of the Week
Arena Pharmaceuticals, Inc. (ARNA), originally recommended by Tyler Laundon in Cabot Small Cap Confidential, continues to base calmly between 42 and 44, digesting its post-Christmas gains. In his latest update, Tyler wrote, “Management announced this week that the previously disclosed deal with United Therapeutics (UNTH) has closed.
As part of that deal ralinepag, an oral, selective and potent prostacyclin receptor agonist in development for the treatment of pulmonary arterial hypertension (PAH), was licensed to UNTH in exchange for $800 million upfront, milestone payments of up to $400 million, and low double-digit tiered royalties. That deal helps Arena focus more attention on etrasimod, olorinab and APD418, as well as other compounds it plans to develop in the future.
Upside is significant for those that can be patient, while downside should be limited.” BUY.
Timothy Lutts, Cabot Stock of the Week, www.cabotwealth.com, 978-745-5532, January 29, 2019