On Friday, Arena Pharmaceuticals Inc.’s shares plummeted to their lowest level ever. The reason: the Food and Drug Administration Panel did not give a green signal to its weight-loss drug lorcaserin.
Due to this, the San Diego Company is now exposed to a lot of questions regarding lorcaserin's safety, together with a likelihood of developing cancer, which was unknown till this week.
The drug was considered to be effective and a large number of healthy people might have used it for a long duration.
It is reported that the executives from the Company have rebuffed to reveal if more testing out would be required. The FDA panel’s negative feedback has affected Arena deeply, as it doesn’t have other noteworthy products in its array.
Also, it is a reminder to other firms that have obesity drugs, since this rejection points out the high bar that the Government organization has set for these kinds of treatments.
Oppenheimer Analyst, Bret Holley said, "We struggle to see how Arena will mitigate these concerns without long-term preclinical/clinical data".
It is anticipated that the broader FDA will give its verdict by Oct. 22.