What do drugs for weight loss, pulmonary hypertension, and irritable bowel syndrome all have in common? Not much -- except they are all offerings in which Arena Pharmaceuticals (NASDAQ: ARNA) has come close to the finish line over the past two decades, only to come up short.
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Ten-plus years ago, Arena was touting its appetite-reduction drug, Belviq, for weight loss. After Belviq was approved by the FDA in mid-2012, the stock price went up five times in value within four months, from $18 in March 2012 to $118 in July 2012, which also marked the last time it saw the triple digits. Much like other weight-loss drugs, including now-bankrupt Orexigen's Contrave, Belviq subsequently underperformed. It was sold to Eisai (OTC: ESALY) for a mere $23 million in January 2017 and was removed from the market in 2020 due to safety concerns. Yikes.
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3 Reasons to Avoid Arena Pharmaceuticals -- and 1 Reason to Buy