SAN DIEGO, Nov. 9, 2010 /PRNewswire-FirstCall/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today reported financial results for the third quarter ended September 30, 2010. Arena also reported earlier today top-line results from its lorcaserin Phase 3 BLOOM-DM (Behavioral modification and Lorcaserin for Overweight and Obesity Management in Diabetes Mellitus) trial.
"We believe the BLOOM-DM top-line results provide additional support for lorcaserin's benefit-to-risk profile," said Jack Lief, Arena's President and Chief Executive Officer. "We remain focused on addressing the recommendations outlined by the FDA in the complete response letter for lorcaserin."
Arena reported a net loss in the third quarter of 2010 of $36.3 million, or $0.31 per share, compared to a net loss in the third quarter of 2009 of $34.8 million, or $0.38 per share, and a net loss in the first nine months of 2010 of $96.3 million, or $0.91 per share, compared to a net loss in the first nine months of 2009 of $123.4 million, or $1.51 per share.
As expected, research and development expenses declined to $20.2 million in the third quarter of 2010 from $22.1 million in the third quarter of 2009. Research and development expenses in the first nine months of 2010 declined to $59.0 million from $89.0 million in the first nine months of 2009. This decrease is primarily due to completing our lorcaserin pivotal Phase 3 clinical trials. Research and development expenses included $2.6 million in non-cash, share-based compensation expense in the first nine months of 2010, compared to $2.9 million in the first nine months of 2009. General and administrative expenses totaled $6.9 million in the third quarter of 2010, compared to $5.4 million in the third quarter of 2009, and $20.6 million in the first nine months of 2010, compared to $18.7 million in the first nine months of 2009. This increase is primarily attributable to increased legal and marketing research expenses. General and administrative expenses in the first nine months of 2010 included $1.7 million in non-cash, share-based compensation expense, compared to $2.2 million in the first nine months of 2009. Total interest and other expense increased to $22.4 million in the first nine months of 2010, compared to $13.7 million in the first nine months of 2009. This increase is primarily attributable to increases in the loss on extinguishment of debt, a non-cash item, and interest expense, both related to Arena's loan from certain Deerfield entities.
At September 30, 2010, cash, cash equivalents and short-term investments totaled $176.5 million and approximately 121.4 million shares of common stock were outstanding.
Arena's Recent and Third Quarter Developments Lorcaserin
Conference Call & Webcast Arena will host both a conference call and webcast to discuss top-line results from the BLOOM-DM trial and third quarter 2010 financial results today, November 9, 2010, at 8:30 a.m. Eastern Time (5:30 a.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.
The conference call may be accessed by dialing 877.643.7155 for domestic callers and 914.495.8552 for international callers. Please specify to the operator that you would like to join the "Arena Pharmaceuticals' Third Quarter 2010" conference call. The conference call will be webcast live under the investor relations section of Arena's website at www.arenapharm.com, and will be archived there for 30 days following the call. Please connect to Arena's website several minutes prior to the start of the broadcast to ensure adequate time for any software download that may be necessary.
Upcoming Corporate PresentationsArena is planning to present at upcoming investment and industry conferences, including:
About Arena PharmaceuticalsArena is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs that target G protein-coupled receptors, an important class of validated drug targets, in four major therapeutic areas: cardiovascular, central nervous system, inflammatory and metabolic diseases. Arena's most advanced drug candidate, lorcaserin, is intended for weight management. Arena's wholly owned subsidiary, Arena Pharmaceuticals GmbH, has granted Eisai Inc. exclusive rights to market and distribute lorcaserin in the United States following FDA approval of the New Drug Application for lorcaserin.
Arena Pharmaceuticals(R) and Arena(R) are registered service marks of the company.
Forward-Looking Statements Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements include statements about BLOOM-DM, including providing support for lorcaserin's profile; addressing recommendations in the complete response letter for lorcaserin; the advancement, therapeutic indication and use, safety, efficacy, tolerability, mechanism of action, scheduling and regulatory review, approval, commercialization and potential of lorcaserin; the termination of the Ortho-McNeil-Janssen collaboration and related expectations and future activities; the therapeutic indication and use, safety, efficacy, tolerability, mechanism of action and potential of APD597 alone and in combination; the therapeutic indication and use, mechanism of action and exposures of APD916; the Eisai collaboration and activities thereunder; and Arena's focus, goals, strategy, research and development programs, and ability to develop compounds and commercialize drugs. For such statements, Arena claims the protection of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from Arena's expectations. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, top-line results are based on a preliminary analysis of then available data, and such findings and conclusions are subject to change following a more comprehensive review of the data; the risk that regulatory authorities may not find data and other information related to Arena's clinical trials and other studies meet safety or efficacy requirements or are otherwise sufficient for regulatory approval; the timing of regulatory review and approval is uncertain; Arena's response to the complete response letter for the lorcaserin NDA may not be submitted in a timely manner and/or the information provided in such response may not satisfy the FDA; the FDA may request additional information prior to approval; unexpected new data; risks related to commercializing new products; Arena's ability to obtain and defend its patents; the timing, success and cost of Arena's research and development programs; results of clinical trials and other studies are subject to different interpretations and may not be predictive of future results; clinical trials and other studies may not proceed at the time or in the manner Arena or others expect or at all; Arena's ability to obtain adequate funds; risks related to relying on collaborative agreements; the timing and receipt of payments and fees, if any, from Arena's collaborators; and satisfactory resolution of pending and any future litigation or other disagreements with others. Additional factors that could cause actual results to differ materially from those stated or implied by Arena's forward-looking statements are disclosed in Arena's filings with the Securities and Exchange Commission. These forward-looking statements represent Arena's judgment as of the time of this release. Arena disclaims any intent or obligation to update these forward-looking statements, other than as may be required under applicable law.Contact: Arena Pharmaceuticals, Inc.
Media Contact: Russo PartnersJack Lief
David Schull, PresidentPresident and CEO
firstname.lastname@example.orgCindy McGeeManager, IR and Corporate Communications
Anthony J. Russo, Ph.D., CEO858.453.7200, ext. 1479
email@example.com www.arenapharm.com Arena Pharmaceuticals, Inc.Condensed Consolidated Statements of Operations (In thousands, except per share amounts)Three months endedNine months endedSeptember 30,September 30,2010200920102009(unaudited)(unaudited)RevenuesManufacturing services
$ 1,846$ 1,737$ 5,258$ 4,663Collaborative agreements
5,7838827,3433,042 Total revenues
7,6292,61912,6017,705Operating ExpensesCost of manufacturing services
1,8141,7055,3094,702Research and development
20,15522,14758,97188,972General and administrative
———3,324Amortization of acquired technology & other intangibles
5415821,6091,721 Total operating expenses
29,37229,85786,525117,444Interest and Other Income (Expense)Interest income
(6,267)(7,339)(16,198)(10,991)Gain from valuation of derivative liabilities
3,0232,4724,857345Loss on extinguishment of debt
968(326)988(859) Total interest and other expense, net
$(36,266)$(34,835)$(96,293)$(123,432)Net loss per share, basic & diluted
$(0.31)$(0.38)$(0.91)$(1.51)Shares used in calculating net loss per share, basic & diluted
117,40990,995105,58281,518Arena Pharmaceuticals, Inc.Condensed Consolidated Balance Sheet Data(In thousands)September 30, 2010December 31, 2009(unaudited)*Assets Cash, cash equivalents & short-term investments
$ 176,536$ 115,449 Accounts receivable
1,9721,415 Other current assets
3,2744,409 Land, property & equipment, net
93,08195,445 Acquired technology & other non-current assets
$ 293,040$ 236,278Liabilities and Stockholders' Equity Accounts payable and accrued liabilities
$ 13,762$ 15,884 Total deferred revenues
49,0464,086 Total derivative liabilities
1,7856,642 Total note payable to Siegfried
9,8889,143 Total note payable to Deerfield**35,43447,906 Total lease financing obligations & other long-term liabilities
77,41978,050 Total stockholders' equity
105,70674,567Total liabilities & stockholders' equity
$ 293,040$ 236,278* The condensed consolidated balance sheet data as of December 31, 2009, has been derived from the audited financial statements as of that date.
** The outstanding principal balance of the note payable to Deerfield was $60.0 million and $90.0 million at September 30, 2010 and December 31, 2009, respectively.
|SOURCE Arena Pharmaceuticals, Inc.|
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