Arena Pharmaceuticals, Inc. (Arena) is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs in four therapeutic areas: cardiovascular, central nervous system, inflammatory and metabolic diseases. The Company’s drug candidate, lorcaserin hydrochloride (lorcaserin), is being investigated in a Phase III clinical trial program for the treatment of obesity. It has a pipeline of compounds that target G protein-coupled receptors (GPCRs), and includes compounds being evaluated independently and with its partners, including Merck & Co., Inc. (Merck) and Ortho-McNeil-Janssen Pharmaceuticals, Inc. (Ortho-McNeil-Janssen). On January 9, 2008, the Company acquired from Siegfried Ltd certain drug product facility assets, including a licensed production facility, fixtures, equipment, other personal property and real estate assets in Zofingen, Switzerland.

-The company posted a smaller second-quarter loss as it shifted focus toward its lead drug candidate. It reported a loss of $38 million, or 48 cents a share, compared with a loss of $65.8 million, or 89 cents per share, a year earlier. Revenues declined 8 percent to $2.4 million from $2.6 million. Research and development expenses dropped to $24.2 million in the quarter ending June 30, from $56.2 million in the second quarter of 2008.

-The company said that data from the its BLOOM, or Behavioral modification and Lorcaserin for Overweight and Obesity Management, Phase 3 trial demonstrate its drug candidate Lorcaserin significantly increased excess weight loss, improved markers of cardiovascular risk and glycemic parameters, and was not associated with depression or suicidal ideation.

-ARNA added 3.92%, to $4.51 today. It has a market cap of 417.73 million and has traded within a 52-week range of $2.26 and $7.42. ARNA is currently above its 20-day moving average of $4.26 and above its 250-day moving average of $4.10. It has near-term technical support in the $4.00 price area. If the shares can continue the recent rebound, we see overhead resistance around the $5.19 price levels. Technical indicator for the stock is buy. Here is the TA chart: