All-
I just posted on Arena Pharmaceuticals on the biotech board, and am copying everyone here. I am still 2% long, but have some concerns with Arena. Please take a look at the text that I copied below.
I too think ARNA is mostly a bet on Estrasimod, and there is good reason to believe the S1P modulator has a best in class safety profile.
https://www.arenapharm.com/wp-content/uploads/2017/05/Etrasi……
One concern I have had is that there was no activity on the MS front, and I have not been able to find a good reason why. The second concern I have is Biogen suddenly backing out of a licensing deal with Mistubishi Tanabe’s amiselimod another S1P modulator - without explanation. Later Salix picked up the drug. That all is a bit strange and has caused me to question this investment. It sounds like amiselimod might be close to estrasimod. I also thought Arena was likely to have a partner for estrasimod by now, but maybe with the cash balance they decided to go it alone. Since the cash balance is strong and Phase 3 for UC just started, I am planning on holding on to a small sliver of this investment. I was considering limiting my risk with options, but they are so thinly traded and expensive that I wouldn’t dabble with that. I am still bullish, but less sanguine about Arena.
Best,
bulwnkl