Credit Suisse Bashes Arena Pharma (ARNA)
Interesting that CS chose to downgrade the obesity drug maker on the day of one of the biggest rallies in recent memory. The DOW rose +250 points, the Nasdaq +66 points, and the S&P 500 rose nearly +30 points today.
Shares of Arena were down -5%.
Kalowski, of Credit Suisse, initiated coverage of Orexigen with an Outperform rating and Arena with an Underperform. Kalowski already rates Vivus at Outperform.
Orexigen has a “favorable risk/reward profile around the pre-approval cardiovascular outcomes trial,” and Vivus as recent “concerns relate to matters that are not new.” But Arena’s prospects may not be as promising, says Kalowski.
“ARNA commendably ushered Belviq through FDA; we believe that sales (ARNA has an approximately 35% royalty) will fall short of the market’s lofty expectations,” he wrote.
Mastery Bottom Line
Mr. Kalowski of Credit Suisse must have written this little piece after snorting a fat line of bath salts.
Anyone who has been following Arena for a while knows that the stock has very low institutional ownership. In fact, around the time that Arena received its FDA approval for Belviq, it was approximately 20% institutional-owned. In the last couple of months it has risen to approximately 32%.
Credit Suisse doesn't have a crystal ball and neither do we. No one knows at this point whether doctors will prescribe Belviq more or Qnexa more. Arena has a lower risk profile so we tend to think that Belviq will be prescribed more, but again, we don't have a time machine.
This seems like a pretty blatant attempt from CS to hold the share-price down so intituitions can continue to back up the truck.
Best of the Blogs
Scanning and identifying the best blog entries every hour
- A Virtual Conversation With Edward Snowden - Live Feed | ZeroHedge
- The New Name Of SAC Capital Has Been Revealed | ZeroHedge
- Meet The 2 Iranians At The Center Of The "Stolen Passport" Plot | ZeroHedge
- Potential Intraday Runners | iBankCoin.com
- The Five Elements to Understanding the Truth About Everything | ZeroHedge
- CoLD WaR 2.0: THe ReTuRN oF PuTTNiK... | ZeroHedge
- A Lackluster Start to the Year | Financial Sense
The most relevant financial news and articles from the Internets
- Assad's Sinister Plan For Retaking Syria's Largest City | Business Insider
- New 'Game Of Thrones' Trailer Teases The Dragons | Business Insider
- Israeli Soccer Player Suffers Gruesome Knee Injury After An Aggressive... | Business Insider
- Report Paints A Horrifying Picture Of Syria's... | Business Insider
- LEGENDARY VC: Here's The Number One Thing I Look For In An Entrepreneur | Business Insider
- Supporters Of Abenomics Are Clinging To A Giant Myth About Japan | Business Insider
- 3 Ways To Say 'No' At Work Without Burning Bridges | Business Insider