Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) is having an incredibly strong start to the trading session this morning, and for good reason. In the after-hours session last night, the company reported results from a key Phase 2 clinical trial. The results were positive, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about the data, what we’re seeing from the stock, and what we’ll be watching for with regard to ARNA ahead.
ARNA Gains On Positive Clinical Data
As mentioned above, Arena Pharmaceuticals is having an incredibly strong start to the trading session this morning after releasing positive Phase 2 clinical data. In a press release issued in the after-hours session last night, the company announced positive topline Phase 2 results from the OPASIOS trial for Etrasimod. Etrasimod is an investigational, once-daily, orally administered, selective sphingosine 1-phosphate (S1P) receptor modulator. The treatment is currently in development for ulcerative colitis. In the release, ARNA announced that patients receiving the 2 mg dose of Etrasimod achieved statistically significant improvements when compared to a placebo in the primary, all secondary, and clinical remission endpoints.
ARNA also said that Etrasimod was well tolerated. In fact, the company said that there were fewer patients with serious adverse events on the treatment when compared to the placebo. In a statement, Preston Klassen, M.D., M.H.S., Executive Vice President of Research and Development and Chief Medical Officer at ARNA, had the following to offer:
We believe these data support proceeding to a Phase 3 program in ulcerative colitis and continuing efforts to understand the broad potential utility of etrasimod in other immune and inflammatory diseases with significant unmet needs. Along with the positive Phase 2 results for ralinepag reported last year, this important milestone for the Company further amplifies our conviction in Arena’s internally discovered and developed compounds and their potential to be best-in-class.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. With the new surrounding Arena Pharmaceuticals being so positive, it’s no surprise that we’re seeing strong gains in the value of the stock. After all, there are few bits of info that can lead to excitement in biotechnology stocks quite like positive clinical data. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (8:37), ARNA is trading at $40.25 per share after a gain of $9.36 per share (30.30%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ARNA. In particular, we’re interested in following the continued development of Etrasimod, as the treatment seems to be showing overwhelmingly positive results. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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