Arena’s Lorcaserin PASSES FDA Approval and 2 Stocks that Have Hit 52-Week Highs
Amarin Corporation (NASDAQ:AMRN) shares closed up 8.59 percent on the day at $14.29, following word that the FDA had approved Arena Pharmaceuticals’ (NASDAQ:ARNA) obesity treatment lorcaserin as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index of 30 kg/m2 or greater, or 27 kg/m2 or more in the presence of at least one weight related comorbid condition. Shares of Amarin have been trading between $5.99 and $15.02 during the past 52 weeks, and reacted Wednesday in sympathy with Arena’s big news, which caused its own shares to jump wildly by 28.7 percent and close at $11.39. Piper Jaffray raised its price target for those shares as it pointed out that the approval will trigger a $60 million milestone payment from partner Eisai upon delivery of commercial supply. Piper restates its Overweight rating on Arena.
Biogen Idec Inc (NASDAQ:BIIB) pays Sunesis Pharmaceuticals (NASDAQ:SNSS) a $1.5 million milestone payment for the advancement of pre-clinical work under its 2011 amended and restated multi-kinase inhibitor partnership agreement. Within the arrangement, Sunesis is also eligible for as much as $60 million in pre-commercial milestone program payments, plus royalties on sales of future joint products. In addiotion, Sunesis retains future co-development and co-promotion options to the program. Shares closed up 0.84 percent on the day, at $143.16, having traded between $83.83 and $143.48 in a 52-week period.
Church & Dwight Company (NYSE:CHD) executives presented slides at Oppenheimer’s 12th Annual Consumer Conference. Comments include the prediction of fiscal year 2012 organic revenue of between 3 and 4 percent; improvement of the gross margin between 25 and 50 basis points; and continued weakness in consumer spending and volatility in commodities. The company expects to bring $1 billion in fre cash flow during the next three years, is assertively seeking acquisitions, and says that its currect year targets are “aggressive but achievable”. Shares closed up 0.8 percent on the day at $54.27, having been traded the past 52 weeks between $36.78 and $54.59.
Lincare Holdings Inc (NASDAQ:LNCR), a Florida supplier of oxygen, respiratory and other chronic therapy services to patients in the home, is being watched by potential suitors, say sources to the Financial Times’ Alphaville. Thought to be leading the bidding is Germany’s Linde, and the sources think that the purchase price is potentially $40 or more a share, valuing Lincare at approximately $3.4 billion. Shares closed up 23.4 percent at $31.17, having been traded between $19.65 and $30.41 for the past 52 weeks.
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