SAN DIEGO, Feb. 27, 2014 /PRNewswire/ -- Arena
Pharmaceuticals, Inc. (NASDAQ: ARNA) today provided a corporate
update and reported financial results for the fourth quarter and
full year ended December 31,
2013.
"The 2013 US commercial launch of BELVIQ®, global
expansion of our collaboration with Eisai, and the advancement of
our research and development programs have positioned Arena for an
outstanding year in 2014," said Jack Lief, Arena's President and
Chief Executive Officer. "As we embrace the challenge of improving
health by bringing innovative medicines to patients, we are focused
on obtaining regulatory approval of BELVIQ around the world
for chronic weight management, pursuing additional lorcaserin
opportunities, and advancing our pipeline of internally discovered
compounds targeting G protein-coupled receptors."
Fourth Quarter and Recent Developments
BELVIQ® (lorcaserin HCl) CIV US Commercial
Update
- Eisai has doubled the size of the sales force detailing BELVIQ
to approximately 400 representatives, expanding the reach to
approximately 65,000 physicians in the
United States.
- Eisai estimated that it has expanded the number of people who
are commercially insured in the United
States with coverage for BELVIQ from approximately 30% at
launch to more than 50%. A patient's individual coverage for BELVIQ
will vary, and may depend on the design of the patient's employer
benefit or health plan.
- In the fourth quarter of 2013, Arena recognized $2.4 million in BELVIQ product revenue, of which
$2.3 million represented 31.5% of
Eisai's net product sales and $0.1
million related to redemptions of the 15-day free trial
voucher.
BELVIQ Rest of World
- Arena and Eisai expanded the BELVIQ collaboration to provide
Eisai with exclusive commercialization rights for all countries
worldwide, except for South Korea,
Taiwan, Australia, New
Zealand and Israel. Under
the terms of the agreement, Arena received an upfront payment of
$60.0 million from Eisai.
- Eisai Laboratorios Ltda. filed for marketing authorization of
BELVIQ as a treatment for chronic weight management in Brazil. In connection with the filing, Arena
achieved a $0.5 million milestone
payment from Eisai.
- Ildong Pharmaceutical Co., Ltd., filed for marketing
authorization of BELVIQ as a treatment for chronic weight
management in South Korea.
Research & Development
- Under the expanded collaboration, Eisai and Arena have
prioritized investigational clinical programs evaluating the
potential of lorcaserin:
- As an aid to smoking cessation;
- When co-administered with phentermine for weight
management;
- For reducing conversion to type 2 diabetes;
- For reducing adverse cardiovascular events; and
- As a once-daily formulation.
- Eisai initiated dosing in a 12-week pilot study of lorcaserin
and phentermine when co-administered, the primary endpoint of which
is safety. This randomized, double-blind and parallel-group study
will enroll approximately 225 overweight and obese adults.
- Eisai initiated dosing in CAMELLIA (Cardiovascular
And Metabolic Effects of Lorcaserin
In Overweight And Obese Patients), a randomized,
double-blind, and placebo-controlled cardiovascular outcomes trial
that will enroll approximately 12,000 overweight and obese adults
with cardiovascular disease or multiple cardiovascular risk
factors. The trial is expected to run for approximately five years.
- CAMELLIA is designed to evaluate lorcaserin's effect on the
incidence of major adverse cardiovascular events, or MACE
(non-fatal myocardial infarction, non-fatal stroke and
cardiovascular death), as compared to placebo, a postmarketing
requirement of the US Food and Drug Administration.
- In addition to the required portion of this trial, CAMELLIA
will also investigate whether lorcaserin reduces the incidence of
conversion to type 2 diabetes and MACE+ (MACE or hospitalization
for unstable angina or heart failure, or any coronary
revascularization), both as compared to placebo.
- Arena initiated dosing in a Phase 1 clinical trial of APD371,
an orally available agonist of the cannabinoid-2 receptor intended
for the treatment of pain. This randomized, double-blind and
placebo-controlled trial will evaluate the safety, tolerability and
pharmacokinetics of single-ascending doses of APD371 in up to 56
healthy adult volunteers.
- Arena completed a Phase 1 single-ascending dose clinical trial
of APD334, an orally available agonist of the sphingosine
1-phosphate subtype 1, or S1P1, receptor intended for
the treatment of a number of conditions related to autoimmune
diseases. Arena plans to initiate a Phase 1 multiple-ascending dose
clinical trial of APD334 this year.
- Arena completed an initial study to evaluate the safety,
tolerability and pharmacokinetic properties of different
formulations of lorcaserin 20 mg extended release tablets, and
selected a once-daily formulation for further development.
Fourth Quarter 2013 Financial Results
- Revenues totaled $6.5 million,
including $2.4 million in BELVIQ
product revenue, of which $2.3
million represented 31.5% of Eisai's net product sales and
$0.1 million related to redemptions
of the 15-day free trial voucher.
- Research and development expenses totaled $19.0 million.
- General and administrative expenses totaled $8.1 million.
- Net loss allocable to common stockholders was $23.5 million, or $0.11 per share.
- At December 31, 2013, cash and
cash equivalents totaled $221.9
million.
- At December 31, 2013,
approximately 218.8 million shares of common stock were
outstanding.
Full Year 2013 Financial Results
- Revenues totaled $81.4 million,
including $66.0 million in milestone
payments from Eisai and $5.7 million
in BELVIQ product revenue, of which $5.3
million represented 31.5% of Eisai's net product sales and
$0.4 million related to redemptions
of the 15-day free trial voucher.
- Research and development expenses totaled $66.5 million.
- General and administrative expenses totaled $31.7 million.
- Net loss allocable to common stockholders was $19.4 million, or $0.09 per share.
2014 Financial Guidance
Arena expects the majority of its 2014 revenues will be payments
from collaborators based on net product sales of BELVIQ and
regulatory milestones. In addition, Arena expects 2014
revenues of approximately $9.0
million from amortization of upfront payments from existing
collaborations, approximately $7.0
million in development and patent reimbursements from Eisai,
and approximately $1.0 million from
manufacturing services for Siegfried.
Arena expects full year 2014 research and development expenses
of approximately $90.0 million to $98.0
million, including non-cash expenses of approximately
$9.0 million, and approximately
$6.0 million in development expenses
reimbursed by Eisai and included in revenue. Arena also expects
full year 2014 general and administrative expenses of approximately
$30.0 million to $36.0 million,
including non-cash expenses of approximately $6.0 million and approximately $1.0 million in patent expenses reimbursed by
Eisai and included in revenue. In addition, Arena expects to spend
approximately $9.0 million to $10.0
million in capital expenditures, primarily related to its
manufacturing facility in Switzerland. Arena will continue to manage
expenses, taking into account its revenues and shared costs with
collaborators.
Scheduled Conference Call and Webcast
Arena will host a conference call and webcast to provide a
corporate update and report fourth quarter and full year 2013
financial results today at 5:00 p.m. Eastern
Time (2:00 p.m. Pacific Time).
The conference call may be accessed by dialing 877.643.7155 for
domestic callers and 914.495.8552 for international callers. Please
specify to the operator that you would like to join the "Arena
Pharmaceuticals' Fourth Quarter and Full Year 2013 Financial
Results Call." The conference call will be webcast live under the
investor relations section of Arena's website at www.arenapharm.com
and will be archived there for 30 days following the call. Please
connect to Arena's website several minutes prior to the start of
the broadcast to ensure adequate time for any software download
that may be necessary.
About BELVIQ® (lorcaserin HCl) CIV
BELVIQ (pronounced BEL-VEEK) is approved by the US Food and Drug
Administration for chronic weight management and is available by
prescription in the United States.
BELVIQ is believed to decrease food consumption and promote satiety
by selectively activating serotonin 2C receptors in the brain. The
exact mechanism of action is not known. For more information about
BELVIQ, click here for the full Product Information or visit
www.BELVIQ.com.
BELVIQ is indicated to be used along with 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 (obese), or
- 27 kg/m2 or greater (overweight) in the presence of
at least one weight-related comorbid condition (e.g., hypertension,
dyslipidemia, type 2 diabetes).
Limitations of Use:
- The safety and efficacy of coadministration of BELVIQ with
other products intended for weight loss including prescription
drugs (e.g., phentermine), over-the-counter drugs, and herbal
preparations have not been established.
- The effect of BELVIQ on cardiovascular morbidity and mortality
has not been established.
In clinical trials, the most common adverse reactions for
patients without diabetes treated with BELVIQ were headache,
dizziness, fatigue, nausea, dry mouth, and constipation. In
patients with diabetes, the most common adverse reactions were
hypoglycemia, headache, back pain, cough, and fatigue.
Arena has granted exclusive marketing and distribution rights to
Eisai for most territories worldwide, to Ildong Pharmaceutical Co.,
Ltd., for South Korea, and to CY
Biotech Company Limited for Taiwan. Arena plans to enter into additional
collaborations to commercialize BELVIQ in Australia, New
Zealand and Israel.
About Arena Pharmaceuticals
Arena is embracing the challenge of improving health by seeking
to bring innovative medicines targeting G protein-coupled
receptors to patients. BELVIQ® (lorcaserin HCl), Arena's internally
discovered drug, is approved in the
United States and is under review for regulatory approval in
additional territories. Arena's US operations are located in
San Diego, California, and its
operations outside of the United
States, including its commercial manufacturing facility, are
located in Zofingen, Switzerland.
For more information, visit Arena's website at
www.arenapharm.com.
Arena Pharmaceuticals® and Arena® are registered service marks
of Arena Pharmaceuticals, Inc. BELVIQ® is a registered trademark of
Arena Pharmaceuticals GmbH.
Forward-Looking Statements
Certain statements in this press release are forward-looking
statements that involve a number of risks and uncertainties. Such
forward-looking statements include statements about the
advancement, therapeutic indication, use, safety, efficacy,
mechanism of action and potential of BELVIQ or lorcaserin; Arena's
position and expectations for 2014; embracing the challenge of
improving health; bringing innovative medicines; research and
development relating to lorcaserin, including the prioritized areas
and related indications, formulations and combinations; the BELVIQ
sales force, including the number of representatives and related
expectations and significance; reimbursement coverage for BELVIQ;
advancing Arena's pipeline and research and development programs;
the protocol, design, scope, enrollment, timing, expectations and
other aspects of Arena's or its collaborators' studies or trials;
financial guidance and expectations; regulatory review and approval
and commercialization of BELVIQ; plans to enter into additional
collaborations and the commercialization of BELVIQ in additional
territories; and Arena's focus, plans, goals, strategy,
expectations, research and development programs, and ability to
discover and develop compounds and commercialize drugs. For such
statements, Arena claims the protection of the Private Securities
Litigation Reform Act of 1995. Actual events or results may differ
materially from Arena's expectations. Factors that could cause
actual results to differ materially from the forward-looking
statements include, but are not limited to, the following: risks
related to commercializing drugs, including regulatory,
manufacturing, supply and marketing issues and the availability and
use of BELVIQ; cash and revenues generated from BELVIQ, including
the impact of competition; Arena's revenues will be based in part
on estimates, judgment and accounting policies, and incorrect
estimates or disagreement regarding estimates or accounting
policies may result in changes to Arena's guidance or previously
reported results; the timing and outcome of regulatory review is
uncertain, and BELVIQ may not be approved for marketing when
expected or ever in combination with another drug, for another
indication or using a different formulation or in any other
territory for any indication; regulatory decisions in one territory
may impact other regulatory decisions and Arena's business
prospects; government and commercial reimbursement and pricing
decisions; risks related to relying on collaborative arrangements;
the timing and receipt of payments and fees, if any, from
collaborators; the entry into or modification or termination of
collaborative arrangements; unexpected or unfavorable new data;
nonclinical and clinical data is voluminous and detailed, and
regulatory agencies may interpret or weigh the importance of data
differently and reach different conclusions than Arena or others,
request additional information, have additional recommendations or
change their guidance or requirements before or after approval;
data and other information related to any of Arena's research and
development may not meet regulatory requirements or otherwise be
sufficient for (or Arena or a collaborator may not pursue) further
research and development, regulatory review or approval or
continued marketing; Arena's ability to obtain and defend patents;
the timing, success and cost of Arena's research and development;
results of clinical trials and other studies are subject to
different interpretations and may not be predictive of future
results; clinical trials and other studies may not proceed at the
time or in the manner expected or at all; having adequate funds;
and satisfactory resolution of litigation or other disagreements
with others. Additional factors that could cause actual results to
differ materially from those stated or implied by Arena's
forward-looking statements are disclosed in Arena's filings with
the Securities and Exchange Commission. These forward-looking
statements represent Arena's judgment as of the time of this
release. Arena disclaims any intent or obligation to update these
forward-looking statements, other than as may be required under
applicable law.
Contact: Arena
Pharmaceuticals, Inc.
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Media Contact: Russo
Partners
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Cindy McGee, Vice
President,
Investor Relations
& Alliance Management
cmcgee@arenapharm.com
858.453.7200, ext.
1479
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David Schull,
President
david.schull@russopartnersllc.com
858.717.2310
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Arena
Pharmaceuticals, Inc.
Condensed
Consolidated Statements of Operations
(In thousands, except
per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months
ended
|
|
Year ended
|
|
December
31,
|
|
December
31,
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
(unaudited)
|
|
(Note)
|
Revenues
|
|
|
|
|
|
|
|
Net product
sales
|
$
2,372
|
|
$ 0
|
|
$
5,702
|
|
$ 0
|
Eisai collaborative
revenue
|
3,483
|
|
975
|
|
72,416
|
|
23,617
|
Manufacturing
services
|
509
|
|
893
|
|
2,690
|
|
3,817
|
Other collaborative
revenue
|
152
|
|
68
|
|
586
|
|
153
|
Total
revenues
|
6,516
|
|
1,936
|
|
81,394
|
|
27,587
|
|
|
|
|
|
|
|
|
Operating Costs
& Expenses
|
|
|
|
|
|
|
|
Cost of product
sales
|
289
|
|
0
|
|
1,803
|
|
0
|
Cost of manufacturing
services
|
1,091
|
|
832
|
|
4,377
|
|
3,671
|
Research &
development
|
19,040
|
|
13,947
|
|
66,468
|
|
54,112
|
General &
administrative
|
8,067
|
|
7,263
|
|
31,681
|
|
26,226
|
Amortization of
acquired technology & other intangibles
|
0
|
|
174
|
|
0
|
|
691
|
Total
operating costs & expenses
|
28,487
|
|
22,216
|
|
104,329
|
|
84,700
|
|
|
|
|
|
|
|
|
Interest &
Other Income (Expense)
|
|
|
|
|
|
|
|
Interest
income
|
21
|
|
38
|
|
89
|
|
119
|
Interest
expense
|
(1,758)
|
|
(1,796)
|
|
(7,091)
|
|
(9,120)
|
Gain (Loss) from
valuation of derivative liabilities
|
49
|
|
461
|
|
10,150
|
|
(13,425)
|
Loss on
extinguishment of debt
|
0
|
|
0
|
|
0
|
|
(6,338)
|
Other
|
200
|
|
297
|
|
352
|
|
400
|
Total interest
& other income (expense), net
|
(1,488)
|
|
(1,000)
|
|
3,500
|
|
(28,364)
|
Net loss
|
(23,459)
|
|
(21,280)
|
|
(19,435)
|
|
(85,477)
|
Deemed dividend
related to beneficial conversion feature of convertible preferred
stock
|
0
|
|
0
|
|
0
|
|
(2,824)
|
Net loss allocable to
common stockholders
|
$(23,459)
|
|
$(21,280)
|
|
$(19,435)
|
|
$(88,301)
|
|
|
|
|
|
|
|
|
Net loss per share
allocable to common stockholders:
|
|
|
|
|
|
|
|
Basic
|
$(0.11)
|
|
$(0.10)
|
|
$(0.09)
|
|
$(0.45)
|
|
|
|
|
|
|
|
|
Diluted
|
$(0.11)
|
|
$(0.10)
|
|
$(0.09)
|
|
$(0.45)
|
|
|
|
|
|
|
|
|
Shares used in
calculating net loss per share allocable to common
stockholders:
|
|
|
|
|
|
|
|
Basic
|
218,643
|
|
217,309
|
|
218,104
|
|
196,524
|
|
|
|
|
|
|
|
|
Diluted
|
218,643
|
|
217,309
|
|
218,104
|
|
196,524
|
|
|
|
|
|
|
|
|
|
Note: The Condensed
Consolidated Statements of Operations has been derived from the
audited financial statements for the year ended December 31, 2012,
and from the unaudited financial statements for the year ended
December 31, 2013.
|
Arena
Pharmaceuticals, Inc.
|
Condensed
Consolidated Balance Sheet Data
|
(In
thousands)
|
|
|
|
|
|
|
|
|
|
December 31,
2013
|
|
December 31,
2012
|
|
*
|
|
*
|
Assets
|
|
|
|
Cash &
cash equivalents
|
$ 221,878
|
|
$ 156,091
|
Accounts
receivable
|
10,602
|
|
5,556
|
Inventory
|
12,759
|
|
6,058
|
Prepaid
expenses & other current assets
|
3,571
|
|
3,454
|
Land, property
& equipment, net
|
77,388
|
|
75,417
|
Acquired
technology & other non-current assets
|
13,609
|
|
14,630
|
Total
assets
|
$ 339,807
|
|
$ 261,206
|
|
|
|
|
Liabilities &
Stockholders' Equity
|
|
|
|
Accounts
payable & accrued liabilities
|
$
30,827
|
|
$
10,210
|
Total deferred
revenues
|
139,190
|
|
62,735
|
Total
derivative liabilities
|
4,892
|
|
15,042
|
Total lease
financing obligations & other long-term liabilities
|
73,041
|
|
74,580
|
Total
stockholders' equity
|
91,857
|
|
98,639
|
Total
liabilities & stockholders' equity
|
$ 339,807
|
|
$ 261,206
|
|
* The Condensed
Consolidated Balance Sheet Data has been derived from the audited
financial statements as of December 31, 2012, and from the
unaudited financial statements as of December 31,
2013.
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SOURCE Arena Pharmaceuticals, Inc.