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      Arena Pharmaceuticals, Inc. (ARNA) skyrocketed in the current market: Why is it so? - Stocks Telegraph

      By Muhammad Ali

      Published on

      December 13, 2021

      3:26 PM UTC

      Last Updated on

      December 13, 2021

      3:51 PM UTC

      Arena Pharmaceuticals, Inc. (ARNA) skyrocketed in the current market: Why is it so? - Stocks Telegraph

      Shares of the ARNA stock skyrocketed in the current market today on December 13, 2021. ARNA stock price saw a surge of 86.20% to reach $43.05 a share at the time of this writing. The stock was gloomy in the previous trading session and went low by 5.33% at closing. Let’s deep dive to explore the reason behind the bull.

      What’s Happening?

      Arena stock announced that it has signed the definitive agreement with Pfizer Inc under which the former will acquire the latter. Pfizer stock will acquire all the outstanding shares of ARNA common stock for $100 per share in an all-cash transaction. This represents a total equity value of approximately $6.7 billion. The transaction is approved by the board of directors of both companies.

      Pfizer is anticipating speeding up the clinical development of etrasimod for patients suffering from immuno-inflammatory diseases. On the other hand, ARNA stock has built a robust development program for etrasimod which consists of 3 studies in ulcerative colitis. Hence this acquisition will prove to be fruitful for Pfizer stock.

      Previous Development of the ARNA stock:

      On November 19, 2021, ARNA stock did announce that it had achieved enrollment in Study A of the Phase 2/3 CULTIVATE trial. The purpose of this trial is to evaluate the safety and efficacy of etrasimod in patients with moderate to severe Crohn’s disease (CD). The target of the ARNA stock was to enroll 70 participants to analyze the effect of etrasimod 2 mg and 3 mg in patients with Crohn’s disease. Arena stock is anticipating the topline data from Study in the second quarter of 2022.

      Financial View of ARNA stock:

      In the first week of November 2021, Arena stock announced third quarter 2021 financial results according to which

      • The company suffered a net loss of $196.3 million, higher than $97.4 million in the same period of the previous year.
      • The stock spent $94.2 million in research and development expenses in the third quarter of 2021.
      • The selling, general and administrative expenses of the ARNA stock were $30.3 million in the reported quarter.
      • By the end of the third quarter, ARNA stock had $0.8 billion in cash and cash equivalents.

      Wrap Up:

      Arena stock is hot among investors after the recent acquisition agreement with Pfizer. The stock has progressed well in 2021 and hence can be a good bet for investors in the long run.

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