Arena Pharma (ARNA) is a biotech company with a recently approved weight loss drug. It has been years since the FDA has allowed a new weight loss drug on the market, and there is a great need for this type of medicine since many people in the U.S. are overweight. Arena does have competition from Vivus currently, but Arena's drug has less restrictions than Vivus prescription medicine. Also, Arena has more sales support than Vivus.
As of January 25, 2013, Arena was selling for $8 and change per share. It could easily go to $20 per share in the next year or two. A lot depends on how fast the company can market the drug and whether or not the drug becomes popular. Arena's prospects will also improve if their product gets approval in Europe and Asian countries. I think a good plan would be to designate 4 or 5% or your portfolio to Arena. Consult with your financial adviser before you buy the stock, though.
Sunday, January 27, 2013
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