- Arena stock is trading at a discount to its early November highs of $88, at $75.5 at time of writing.
- The value is mostly in Etrasimod - a new type of treatment for immune related diseases such as Ulcerative Colitis, Crohn's Disease, and Atopic Dermatitis.
- Shares dropped in November as Etrasimod failed to achieve its primary endpoint in AD - but analysis suggests that may have been down to a trial mishap.
- The company will push ahead with a pivotal trial in AD, and UC - and these are huge markets worth ~$40bn.
- If the promise of S1P Receptor Modulators shows up in late-stage trials, ARNA could have a blockbuster drug on its hands, and a valuation >$150 per share, in my view.
For further details see:
Arena Pharmaceuticals: Humira LOE Coming At Right Time For Potential Blockbuster Etrasimod