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Arena Pharmaceuticals Enters Into Strategic Agreements for the Manufacture of Pharmaceutical Material, Including Lorcaserin

SAN DIEGO, Dec. 18 /PRNewswire-FirstCall/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) announced today that it entered into strategic cooperation agreements with Siegfried Ltd., an affiliate of Siegfried Holding AG (SWX: SFZN). The agreements primarily relate to the manufacturing of lorcaserin hydrochloride, which is expected to be necessary for Arena's planned New Drug Application (NDA) submission to the U.S. Food and Drug Administration (FDA) and for commercialization of lorcaserin after regulatory marketing approval. Lorcaserin is Arena's Phase 3 oral drug candidate being developed for the treatment of obesity. Arena expects that this transaction will close on January 8, 2008 and believes that it has the potential to:

-- Reduce manufacturing related risks to the lorcaserin NDA registration

lots and submission of its planned lorcaserin NDA.

-- Secure a long-term supply of lorcaserin active pharmaceutical

ingredient (API).

-- Reduce the overall manufacturing costs for lorcaserin and other Arena

product candidates.

-- Lead to significant future tax benefits, which may result from a

favorable tax ruling Arena received from Switzerland.

The agreements with Siegfried include the following:

-- A long-term supply agreement for Arena's purchase of lorcaserin API at

competitive rates for a period of 15 years after FDA approval.

-- An asset purchase agreement for Arena's purchase of certain finishing

facility assets and technology, including the transfer of certain

equipment, fixtures and real estate assets used in converting API into

tablet form, the expected finished drug product (FDP) of lorcaserin.


SOURCE Arena Pharmaceuticals, Inc.
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