Arena Expands Deal With Eisai On Obesity Drug Sales; Q3 Loss Widens

(RTTNews) - Arena Pharmaceuticals Inc.'s (ARNA) subsidiary, Arena Pharmaceuticals GmbH, has expanded the BELVIQ marketing and supply agreement with Eisai Inc. along with its parent company Eisai Co., Ltd. (ESALY.PK, ESALF.PK). The expanded deal provides Eisai with exclusive commercialization rights for all countries worldwide, except for South Korea, Taiwan, Australia, Israel and New Zealand; while the agreement amends and restates the earlier one that granted Eisai rights to commercialize BELVIQ in most of North and South America.

Pursuant to this, Arena would receive an upfront payment of $60 million from Eisai and is eligible for regulatory and development milestone payments of up to a total of $176.5 million. The total for milestone payments represents an increase of $123 million from the amount remaining available under the previous deal.

BELVIQ is believed to decrease food consumption and promote satiety by selectively activating serotonin 2C receptors in the brain. The exact mechanism of action of BELVIQ is not known.

Arena said it would continue to sell BELVIQ to Eisai for commercialization in the U.S. and in the other territories in North and South America for a price starting at 31.5% and 30.75% of Eisai's net sales, respectively. Based on sales in the territories covered by the agreement, Arena is also eligible to receive $1.56 billion in one-time purchase price adjustment payments.

In addition, the company reported a wider third-quarter 2013 net loss allocable to common stockholders of $17.2 million, or $0.08 per share, compared with a $15.52 million, or $0.07 per share loss last year. On average, 12 analysts polled by Thomson Reuters expected loss per share of $0.12 for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the three months totaled $3.6 million, including $2.0 million in net product sales of BELVIQ. Eleven analysts estimated revenues of $5.30 million for the quarter.