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Arena Pharmaceuticals Announces Second Quarter 2008 Financial Results and Recent and Second Quarter Highlights
Date:8/5/2008

ovel oral compound intended for the treatment of an undisclosed, common psychiatric disorder.

Updated 2008 Financial Guidance

Arena also reported that it updated its financial guidance for 2008 expenses for external clinical and preclinical study fees and expenses to approximately $130 to $138 million from $114 to $124 million. The change is primarily due to consolidating the lorcaserin pivotal trial program into two trials, BLOOM and BLOSSOM, while maintaining the same number of patients, approximately 7,000, originally planned across a three trial pivotal program. The entire Phase 3 program includes BLOOM, BLOSSOM and a non-pivotal Phase 3 trial, BLOOM-DM, which is expected to enroll approximately 600 patients. The increase is partially offset by reductions in expenses in the other development programs. Due to savings in other areas, including capital expenditures, as well as changes in the company's balance sheet, including an increase in accrued clinical expenses at the end of 2008 as compared to the beginning of 2008, Arena still expects to end 2008 with approximately $160 million in cash, cash equivalents and short-term investments, which assumes that common stock will be issued in connection with the conversion or redemption of outstanding shares of its series B redeemable convertible preferred stock, including any that may be redeemed on the series B-1's December 2008 mandatory redemption date. If Arena partners any of its programs, it would expect that its year-end cash, cash equivalents and short- term investments would be higher.

Scheduled Earnings Call

Arena will host both a conference call and webcast to discuss the second quarter 2008 financial results and to provide a corporate update today, Tuesday, August 5, 2008, at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time). Jack Lief, President and Chief Executive Officer and Robert E. Hoffman, Vice President, Finance and Chief Financial Officer will host the conference call.


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