Arena Pharmaceuticals Inc. (NASDAQ:ARNA) up by 8.18%, Bank of America Corp (NYSE:BAC)

Posted by Lynn Eisler May 28, 2013 0 Comment 2622 views

Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) surged today by 8.18% to now trade at $8.98. The company has finally received a DEA scheduled to assess Belviq’s abuse potential in May. The review has long been awaited and has led to a delay in the launch of the drug. As per the DEA, lorcaserin, the primary ingredient of the drug, can lead to hallucinogenic effect, if consumed in higher dose. The DEA has given the drug a Schedule IV classification, which is considered to be positive news for the drug.

The drug will be soon available in the market of the Unites States. The drug will then impact the sales and valuations of other obesity players’ in the market.

The company had invested a huge amount in this drug in order to be the first to launch this anti-obesity drug in the market but in spite of all its efforts  VIVUS, Inc. (NASDAQ:VVUS) was successful in launching its anti-obesity drug first in the market.

Arena has further drugs up its sleeves which are waiting for FDA’s approval, the company’s new drugs requires loads of investments.

Bank of America Corp (NYSE:BAC) surged today by 1.51% to now trade at $13.44. An analyst at Sanford C. Bernsteinhas reiterated a “market perform” rating on the stock, and are targeting a price of $13.00 per share, so with this price target we can expect a downside of about 1.81% in the share from its last closing price. Analysts at Guggenheim have their price target raised from $14.50 to $15.50 and have a “Buy” rating on the stock. Analysts at Keefe, Bruyette & Woods also downgraded the stock to a “market perform” from an “outperform” rating. Analysts at Deutsche Bank have reiterated a “hold” rating and raised their target price to $13.00 from $11.00. 18 analysts have a “Hold” rating on the stock, 2 have a “sell” rating and 11 have “Buy” rating. The stock has a consensus “hold” rating with a average target price of $13.09.

Bruce Berkowitz’s Fairholme, a very large hedge fund, which has over $19 billion in assets under management holds about 100.589 million shares of Bank of America, the company’s stock represent the second largest equity holding of the hedge fund representing 15.59% of the hedge fund’s equity portfolio.

About Lynn Eisler

Lynn Eisler is a national news reporter focusing on economic issues, data analysis and the financial health of state and local governments. Lynn has been honored with the H.L. Mencken Award for Investigative Reporting, the Champion of Justice Award for reporting on the drug war, and the John Hancock Award for business reporting. Lynn was also a Knight Medical School Fellow at the University of Michigan.

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