Invest in Arena and Its Anti-obesity Drug

Invest in Arena
and Its Anti-obesity Drug
By
www.ProfitableInvestingTips.com

As many as a third of adults in
the USA are obese and one in
six children shares the
problem.


Type II diabetes, high blood,
pressure, heart failure, and
other diseases are worsened
by obesity.


Now the FDA has approved a
new drug, made by Arena
Pharmaceuticals, for obesity.


The question for investors is if
it is worthwhile to invest in
Arena and its anti-obesity
drug.


It certainly would have been a
good idea to buy Arena stock,
ARNA, on or before mid-day
on June 27, 2012.


When the FDA approved the
drug Arena stock jumped up
four dollars a share to the $12
range.


For those who might want to
invest in Arena Pharmaceuticals
and its anti-obesity drug,
Belviq, here are some facts to
add to your fundamental analysis
of the company and its product.


How Does Bleviq Work?


Bleviq, generic name
lorcaserin, has properties
similar to the body’s chemical
neurotransmitter serotonin
and suppresses appetite.


In studies of one and two
years the drug was given to
people along with a program
of dieting and exercise.


It is approved for use in obese
people with a body mass
index (a weight by height
estimate of obesity) of 30 or
more.


It also approved for those with
a body mass index of 27 or
more who also have diseases
linked to obesity, such as Type
II diabetes, hypertension, or
high cholesterol.


Of the people who took the
drug and were counseled
regarding diet and exercise
forty-seven percent of non-
diabetics lost five percent of
their weight or more.


Of those with diabetes thirty-
eight percent lost at least five
percent of their initial weight.


In each case the amount of
weight loss of those taking the
pill versus those taking a
placebo was statistically
significant.


Although the drug seems to work
for its stated purpose investors
will want to consider just how
much money this drug will make
before deciding that buying
ARNA stock is just a matter of
picking new winners.


Side Effects and Other
Choices


If you invest in Arena and its
anti-obesity drug remember
that Blevig may cause a
potentially lethal serotonin
syndrome


of agitation, diarrhea,
sweating, fever, muscle
spasms, and forgetfulness.


It may be contraindicated in
people taking antidepressants
or drugs for migraine.


A new drug, Qnexa, appears
to be on its way to FDA
approval as well and there are
two drugs currently on the
market for treating obesity.


Their stories are instructive.


Olistat prevents the absorption
of dietary fat making it
effective but causes loose
stools making people not want
to take it.


Phentermine, an appetite
suppressant, is related to
amphetamine and, as such, is
recommended for short term
use only.


Because Bleviq may
aggravate congestive heart
failure the company will need
to conduct six post marketing
studies to look at this potential
problem.


As always with stock investing
the investor needs look at
cash flow and he needs to
consider risk.


If this drug catches on it has a
huge potential market, a third
of American adult and a sixth
of all American children plus
sales overseas.


If side effects predominate
sales will fall off and there
could be lawsuits.


Invest in Arena and Its Anti-obesity Drug

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Invest in Arena and Its Anti-obesity Drug