Arena Pharmaceuticals Inc (NASDAQ:ARNA) is Attracting Smart Money

In a just published Form 13, filed with the US Securities and Exchange Commission (SEC), Arena Pharmaceuticals Inc (NASDAQ:ARNA) reported that Great Point Partners has picked up 30,000,000 of common stock as of 2017-04-28.

The acquisition brings the aggregate amount owned by Great Point Partners to a total of 30,000,000 representing less than 9.75% stake in the company.

For those not familiar with the company, Arena Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on developing small molecule drugs across a range of therapeutic areas. The Company has three primary investigational clinical programs: etrasimod (APD334) in Phase II evaluation for ulcerative colitis, APD371 entering Phase II evaluation for the treatment of pain associated with Crohn’s disease, and ralinepag (APD811) in Phase II evaluation for pulmonary arterial hypertension (PAH). The Company’s drug, Lorcaserin, is approved for marketing in the United States and South Korea for the indication of weight management. The Company’s drug candidates in clinical development include APD334 for autoimmune diseases, ralinepag for vascular diseases and APD371 for pain. The Company’s programs under collaboration include nelotanserin for dementia-associated psychosis, temanogrel for thrombotic diseases, and an undisclosed orphan GPCR for central nervous system (CNS) indication(s).

A glance at Arena Pharmaceuticals Inc (NASDAQ:ARNA)’s key stats reveals a current market capitalization of 409.39 Million based on 307.73 Million shares outstanding and a price at last close of $1.34 per share.

Looking at insider activity, there are a few transactions worth noting.

Specifically, on 2017-04-26, Munshi picked up 50,000 at a purchase price of $1.41. This brings their total holding to 51,875 as of the date of the filing.

On the sell side, the most recent transaction saw White unload 18,728 shares at a sale price of $1.99. This brings their total holding to 85,529.

It’s possible to gauge a company’s potential by tracking the activity of its major holders, as well as checking in on insider activity such as those transactions listed above. We’ll be keeping an eye on Arena Pharmaceuticals Inc (NASDAQ:ARNA) as things move forward to see if its progress aligns with these transactions.

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Author: Richard Schwarz

Richard Schwarz is a veteran analyst in the small cap space, with a particular focus on the development stage biotech sector. He is a native of Canada, and attended NYU before working for a host of big name pharma outfits.

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