Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) today reported financial results for the second quarter ended June 30, 2010, and recent developments, including the successful Pre-Approval Inspection, or PAI, of the company's Swiss drug product manufacturing facility by the US Food and Drug Administration, or FDA.
"We have recently achieved a number of important milestones, including the establishment of an agreement with Eisai for the commercialization of lorcaserin in the US, the successful completion of the FDA's pre-approval inspection of our Swiss manufacturing facility and the publication of our BLOOM trial results in the New England Journal of Medicine," stated Jack Lief, Arena's President and Chief Executive Officer. "We are continuing to execute on our plans for lorcaserin as we prepare for the September FDA advisory committee meeting and potential regulatory approval."
Arena reported a lower net loss in the second quarter of 2010 of $28.8 million, or $0.28 per share, compared to a net loss in the second quarter of 2009 of $38.0 million, or $0.48 per share, and a lower net loss in the first half of 2010 of $60.0 million, or $0.60 per share, compared to a net loss in the first half of 2009 of $88.6 million, or $1.16 per share.
As expected, research and development expenses declined to $20.5 million in the second quarter of 2010 from $24.2 million in the second quarter of 2009. Research and development expenses in the first half of 2010 declined to $38.8 million from $66.8 million in the first half of 2009. This decrease is primarily attributable to the completion of the pivotal Phase 3 clinical trials for lorcaserin. Research and development expenses included $1.8 million in non-cash, share-based compensation expense in the first half of both 2010 and 2009. General and administrative expenses totaled $6.8 million in the second quarter of 2010, compared to $5.7 million in the second quarter of 2009, and $13.8 million in the first half of 2010, compared to $13.3 million in the first half of 2009. This increase in general and administrative expenses is primarily attributable to increased market research expenses. General and administrative expenses in the first half of 2010 included $1.3 million in non-cash, share-based compensation expense, compared to $1.6 million in the first half of 2009. Interest expense of $9.9 million was recorded in the first half of 2010, compared to $3.7 million in the first half of 2009. This increase is primarily attributable to the loan Arena received from Deerfield Management in July 2009.
At June 30, 2010, cash, cash equivalents and short-term investments totaled $118.5 million and approximately 112.3 million shares of common stock were outstanding. In July 2010, Arena received an upfront payment of $50.0 million from Eisai Inc., or Eisai, under a marketing and supply agreement for lorcaserin.
Arena's Recent Developments