ARNA has just won a vote in favour of approving lorcaserin, its anti-obesity pill, from an advisory committee meeting. Very supportive voting with 18 of the 23 member committee voting that the company had demonstrated that the drug’s benefits outweighed its potential risks when used long term in overweight and obese people.
We can expect a significant spike in ARNA based on this news. VVUS’ price essentially doubled in the immediate aftermath of its positive Ad Comm meeting in February. I would not expect ARNA to behave quite so aggressively as it has alreay seen considerable upside running into the meeting.
As mentioned in a previous post, I tend to look for an entry about 15 days ahead of an Ad Comm meeting. 15 days ago ARNA closed at $2.27. Yesterday it closed at $3.66 – a 61% increase in 3 weeks.
I may take a position in this between now and the PDUFA date (June 27th) but if it gaps up significantly tomorrow then I will certainly wait for a pull-back to do so.