Arena reports cash of $250.8 million at Sept. 30 thanks to follow-on stock sale

New York, Oct. 25 - Arena Pharmaceuticals, Inc. said it had $250.8 million of cash, cash equivalents and short-term investments at Sept. 30, up from $127.9 million at Dec. 31, 2005.

The change was the result of the $169 million stock sale completed in February and $9.0 million received from milestone payments.

Arena now expects to end the year with $213 to $220 million in cash, cash equivalents and short-term investments compared to previous guidance of $192 to $202 million. The change is primarily due to a decrease in expected expenditures for external preclinical and clinical study fees and expenses to $48 to $50 million as compared to the previous $63 to $65 million forecast, the company said.

For the third quarter, Arena reported revenues of $4.4 million, down from $7.4 million in the same period of 2005. Total revenues for the first nine months of 2006 were $25.9 million, up from $17.4 million in the comparable period a year earlier.

The net loss was $20.1 million or 43 cents per share for the third quarter and $51.9 million or $1.14 per share for the first three quarters of the year. Comparable figures for 2005 were a loss of $16.1 million or 46 cents per share in the third quarter and $57.5 million or $1.69 per share for the first nine months.

"In the third quarter Arena reached a very important corporate milestone by initiating the phase 3 trial to evaluate lorcaserin for the treatment of obesity, remaining on track to file an NDA in 2009," said Jack Lief, Arena's president and chief executive officer, in a news release.

"We are also continuing to work towards initiation of the phase 2 trial of APD125 for insomnia and the phase 1 trial of APD791, an anti-platelet compound in preclinical development for the prevention and treatment of arterial thrombo-embolic diseases."

For the coming year, the San Diego-based biopharmaceutical company expects APD125 phase 2 and APD791 phase 1 data, the month six DSMB review for lorcaserin, the continuation and expansion of the lorcaserin pivotal program and additional visibility on its partnerships with Merck and Ortho-McNeil.

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