On February 26, 2020 Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) provided a corporate update and reported financial results for the fourth quarter and full-year ended December 31, 2019 (Press release, Arena Pharmaceuticals, FEB 26, 2020, View Source [SID1234554832]).
Schedule your 30 min Free 1stOncology Demo!
Discover why more than 1,500 members use 1stOncology™ to excel in:
Early/Late Stage Pipeline Development - Target Scouting - Clinical Biomarkers - Indication Selection & Expansion - BD&L Contacts - Conference Reports - Combinatorial Drug Settings - Companion Diagnostics - Drug Repositioning - First-in-class Analysis - Competitive Analysis - Deals & Licensing
Schedule Your 30 min Free Demo!
"As we continue to execute on near and mid-term operational objectives, including delivering up to eight major data readouts between 2020 and 2021, we must also make the bold, strategic moves necessary to unlock the critical value that we believe our pipeline holds," said Amit D. Munshi, President and CEO of Arena. "As a result, I am excited to announce the appointment of Kevin Lind, as President and Chief Executive Officer of our subsidiary, Arena Neuroscience, Inc., and the appointment of Laurie Stelzer as Executive Vice President and Chief Financial Officer of Arena."
"I have been tremendously privileged to have joined the company three years ago with the charter to reset Arena and deliver long-term shareholder value," said Mr. Lind "I am excited to continue that mission by further leveraging the significant potential value of Arena’s world-class GPCR discovery research in the area of neuroscience. We believe Arena Neuroscience has an opportunity to expand treatment options in a therapeutic area where there is an urgent unmet need for patients."
Laurie Stelzer joins Arena from Halozyme Therapeutics, where she has spent the last five years as the Chief Financial Officer, leading the Finance, Information Technology, Business Development, Project Management and Site Operations organizations. Prior to joining Halozyme, Laurie held senior management roles at Shire Plc (acquired by Takeda), including Senior Vice President of Finance, Division CFO for the Regenerative Medicine Division, and Head of Investor Relations. Previously she held positions of increasing responsibility during her fifteen-year career at Amgen, Inc., spanning the areas of Finance, Treasury, Global Accounting and International/Emerging Markets. Laurie received her B.S. in Accounting from Arizona State University, and her M.B.A. from the Anderson School at the University of California, Los Angeles. She currently serves on the board of directors for Surface Oncology.
"Laurie is an accomplished executive with significant financial expertise across both emerging and established biotechnology companies and will be an exceptional addition to our management team," said Mr. Munshi. "Having previously worked with Laurie at Amgen, I am confident in her experience and leadership as we continue to scale a sustainable, vibrant, company while being mindful stewards of our resources."
Program Updates:
Etrasimod ELEVATE UC 52 Phase 3 trial in ulcerative colitis (UC) ongoing; ELEVATE UC 12 Phase 3 trial expected to initiate at a later date
Etrasimod CULTIVATE Phase 2b dose-ranging trial in Crohn’s disease (CD) initiated and ongoing
Etrasimod eosinophilic esophagitis (EoE) Phase 2b and alopecia areata (AA) Phase 2 planning ongoing, initiation expected this year
Etrasimod atopic dermatitis (AD) ADVISE Phase 2b trial ongoing; data expected H2 2020
Olorinab CAPTIVATE Phase 2b trial in abdominal pain associated with irritable bowel syndrome
(IBS-C, IBS-D) ongoing; data expected H2 2020
APD418 in acute heart failure (AHF) Phase 1 trial ongoing; Fast Track designation granted
Financial Update
Fourth Quarter 2019 Financial Results
Revenues totaled $3.0 million, primarily consisting of $5.0 million of development milestone revenue from Everest offset by a reduction of estimated future royalties from BELVIQ sales
Research and development expenses totaled $74.6 million, including $7.0 million related to non-cash share-based compensation
General and administrative expenses totaled $22.2 million, including $6.3 million related to non-cash share-based compensation
Net loss was $88.3 million or $1.76 per share
Full-Year 2019 Financial Results
Revenues totaled $806.4 million, primarily consisting of $800.0 million of revenue from the United Therapeutics upfront payment
Research and development expenses totaled $231.5 million, including $27.4 million related to non-cash share-based compensation
General and administrative expenses totaled $77.6 million, including $25.7 million related to non-cash share-based compensation
Income tax provision was $110.3 million as a result of utilizing the deferred tax assets that were recorded in the fourth quarter of 2018
Net income was $397.6 million, or $7.99 per share
At December 31, 2019, Arena’s cash, cash equivalents and investments balance was approximately $1.1 billion and approximately 50.2 million shares of Arena common stock were outstanding.
Conference Call & Webcast Information
Arena will host a conference call and live webcast with the investment community today, Wednesday, February 26, 2020, at 4:30 PM ET to discuss the financial results and provide a corporate update.
When: Wednesday, February 26, 2020, at 4:30 PM ET
Dial-in: (877) 643-7155 (United States) or (914) 495-8552 (International)
Conference ID: 8286947
Please join the conference call at least 10 minutes early to register. You can access the live webcast under the investor relations section of Arena’s website at: www.arenapharm.com. A replay of the conference call will be archived under the investor relations section of Arena’s website for 30 days shortly after the call.