Shares of Arena Pharmaceuticals, Inc. (ARNA) skyrocketed 76.2% after the company announced encouraging top-line results from a phase Ib study (n=50) on APD334 being developed for the treatment of autoimmune diseases.
The randomized, double-blind, placebo-controlled study evaluated the safety, tolerability, pharmacodynamics and pharmacokinetics of multiple ascending doses of the candidate.
Results revealed that APD334 established a dose-dependent effect of lowering the lymphocyte count in the blood. The candidate showed a mean decrease in the lymphocyte count of up to 69% from baseline. The study further revealed that there were neither any significant safety findings related to heart rate, rhythm and pulmonary function nor were there any cases of discontinuation due to adverse events.
Arena Pharma now plans to move ahead with phase II development of APD334 for ulcerative colitis and Crohn's disease indications after encouraging phase Ib results.
AbbVie Inc.’s (ABBV) key drug, Humira, is well known in the highly lucrative autoimmune disease market. The drug is approved for several autoimmune diseases like Crohn’s disease, rheumatoid arthritis, psoriatic arthritis and spondylitis among others.
Our Take
Results from the phase Ib study on APD334 were encouraging. We are pleased with Arena Pharma’s pipeline progress so far.
Currently most of the company’s revenues come from its weight loss drug Belviq and the company is highly dependent on the drug for growth. Belviq sales have been lukewarm so far. As a results successful pipeline development is crucial for the company.
Arena Pharma presently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include AMAG Pharmaceuticals, Inc. (AMAG) and Affymetrix Inc. (AFFX). Both are Zacks Rank #1 (Strong Buy) stocks.
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