SAN DIEGO, Nov. 10, 2015 /PRNewswire/ -- Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) today reported financial results for the third quarter ended September 30, 2015, and provided a corporate update.

"On October 27, we announced a plan to improve efficiencies and reduce costs as we chart a new course for Arena with our refocusing effort," said Harry F. Hixson, Jr., Arena's interim Chief Executive Officer. "As we head into 2016, we intend to continue to implement this plan to be sure we are taking full advantage of our key strengths in a strategic, optimized manner."

Third Quarter and Recent Developments

Corporate Update


    --  Announced plans to improve efficiencies and reduce costs as it focuses
        on the advancement of its research and development priorities. As part
        of this initiative, Arena reduced its US workforce by approximately 80
        employees or 35%, which is expected to reduce annualized cash
        expenditures for personnel by approximately $11.0 million. Arena plans
        to implement additional cost control measures to further reduce its
        expenditures, including reductions at its Swiss manufacturing facility,
        Arena Pharmaceuticals GmbH.

Research and Development Update


    --  Announced the initiation of a Phase 2 proof-of-concept clinical trial of
        APD334, an oral Sphingosine 1-Phosphate Subtype 1 receptor modulator for
        autoimmune diseases, being studied in this trial for the treatment of
        ulcerative colitis.
    --  Announced the initiation of a Phase 1b multiple-ascending dose clinical
        trial of APD371, a selective and potent agonist of the cannabinoid 2
        receptor.
    --  Axovant Sciences Ltd. acquired all of Roivant Sciences Ltd.'s rights to
        nelotanserin, an inverse agonist of the serotonin 2A receptor internally
        discovered by Arena. Arena previously granted Roivant, Axovant's parent
        company, exclusive worldwide rights to develop and commercialize
        nelotanserin under a Development, Marketing and Supply Agreement.
        Axovant announced that it intends to initiate two Phase 2 clinical
        trials with nelotanserin in the first quarter of 2016, with the first
        trial in patients with either dementia with Lewy bodies, or Parkinson's
        disease dementia who suffer from visual hallucinations, and the second
        trial in dementia with Lewy bodies patients experiencing REM Behavior
        Disorder.

BELVIQ(®) (lorcaserin HCl) Update


    --  Eisai acknowledged difficulties in the US anti-obesity market and
        announced plans to focus on patients and physicians in certain areas of
        the US where there is insurance coverage and a need for treatment
        options.
    --  IMS Health estimates that approximately 157,000 prescriptions for BELVIQ
        were filled in the US in the third quarter of 2015, representing growth
        in total prescriptions of approximately 9.8% compared to the same
        quarter of last year and a decrease of 14.4% compared to the previous
        quarter.
    --  Ildong Pharmaceutical Co., Ltd., estimates that approximately 2.1
        million tablets of BELVIQ were prescribed in South Korea in the third
        quarter of 2015, which equates to approximately 34,400 one-month
        prescriptions, representing growth in total prescriptions of
        approximately 18.6% compared to the previous quarter.
    --  Announced that the US Patent and Trademark Office granted Arena US
        Patent No. 9,169,213, entitled "Method of Weight Management," covering
        BELVIQ for chronic weight management. The patent is based on the
        discovery that achieving 5% weight loss with BELVIQ by Week 12 is a
        strong predictor of responses in weight loss at Week 52 of treatment.

Third Quarter 2015 Financial Results


    --  Revenues totaled $9.1 million, including $4.9 million in net product
        sales of BELVIQ.
    --  Research and development expenses totaled $22.1 million.
    --  General and administrative expenses totaled $9.0 million.
    --  Net loss was $26.4 million, or $0.11 per share.
    --  At September 30, 2015, cash and cash equivalents totaled $181.3 million
        and approximately 242.4 million shares of common stock were outstanding.

Scheduled Conference Call and Webcast

Arena will host a conference call and webcast today at 5:00 p.m. Eastern Time (2:00 p.m. Pacific Time) to provide a corporate update and report third quarter 2015 financial results. The conference call may be accessed by dialing 877.643.7155 for domestic callers and 914.495.8552 for international callers. Please specify to the operator that you would like to join the "Arena Pharmaceuticals' Third Quarter 2015 Financial Results and Corporate Update Conference Call." The conference call will be webcast live under the investor relations section of Arena's website at www.arenapharm.com, and will be archived there for 30 days following the call. Please connect to Arena's website several minutes prior to the start of the broadcast to ensure adequate time for any software download that may be necessary.

About BELVIQ(®) (lorcaserin HCl) CIV

BELVIQ is approved by the US Food and Drug Administration to be used along with a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index of:


    --  30 kg/m(2) or greater (obese), or
    --  27 kg/m(2) or greater (overweight) in the presence of at least one
        weight-related comorbid condition (e.g., hypertension, dyslipidemia,
        type 2 diabetes).

Limitations of Use:


    --  The safety and efficacy of coadministration of BELVIQ with other
        products intended for weight loss including prescription drugs (e.g.,
        phentermine), over-the-counter drugs, and herbal preparations have not
        been established.
    --  The effect of BELVIQ on cardiovascular morbidity and mortality has not
        been established.

In clinical trials, the most common adverse reactions for patients without diabetes treated with BELVIQ were headache, dizziness, fatigue, nausea, dry mouth, and constipation, and, in patients with diabetes, the most common adverse reactions were hypoglycemia, headache, back pain, cough, and fatigue.

For additional information about BELVIQ, including important safety information, click here for the full Prescribing Information or visit www.BELVIQ.com.

About Arena Pharmaceuticals

Arena embraces the challenge of improving health by seeking to bring innovative medicines targeting G protein-coupled receptors to patients. Arena's focus is discovering, developing and commercializing drugs to address unmet medical needs, and BELVIQ(®) (lorcaserin HCl) is Arena's first internally discovered drug approved for marketing. Arena has US operations located in San Diego, California, and operations outside of the United States, including its commercial manufacturing facility, located in Zofingen, Switzerland. For more information, visit Arena's website at www.arenapharm.com.

Arena Pharmaceuticals(®) and Arena(® )are registered service marks of Arena Pharmaceuticals, Inc. BELVIQ(®) is a registered trademark of Arena Pharmaceuticals GmbH.

Forward-Looking Statements

Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements include statements about Arena's workforce reduction, plans and refocusing effort, including with respect to implementing the plan, improving efficiencies, reducing costs, implementing cost control measures, taking advantage of strengths, advancing research and development, expected outcome and other related activities and expectations; the progress, study, therapeutic indication, mechanism of action and potential of compounds and other aspects of research and development; rights, activities and expectations with respect to collaborations; the therapeutic indication, use, safety, efficacy, mechanism of action and potential of BELVIQ or lorcaserin; patent coverage; embracing the challenge of improving health; seeking to bring innovative medicines to patients; and Arena's focus, plans, goals, strategy, expectations, research and development programs, and ability to discover and develop compounds and commercialize drugs. For such statements, Arena claims the protection of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from Arena's expectations. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, the following: risks related to commercializing drugs, including regulatory, manufacturing, supply and marketing issues and the availability and use of BELVIQ or lorcaserin; cash and revenues generated from BELVIQ, including the impact of competition; the risk that Arena's revenues are based in part on estimates, judgment and accounting policies, and incorrect estimates or disagreement regarding estimates or accounting policies may result in changes to Arena's guidance or previously reported results; the timing and outcome of regulatory review is uncertain, and lorcaserin may not be approved for marketing in combination with another drug, for another indication or using a different formulation or in any other territory for any indication; regulatory decisions in one territory may impact other regulatory decisions and Arena's business prospects; government and commercial reimbursement and pricing decisions; risks related to relying on collaborative arrangements; the timing and receipt of payments and fees, if any, from collaborators; the entry into or modification or termination of collaborative arrangements; unexpected or unfavorable new data; nonclinical and clinical data is voluminous and detailed, and regulatory agencies may interpret or weigh the importance of data differently and reach different conclusions than Arena or others, request additional information, have additional recommendations or change their guidance or requirements before or after approval; data and other information related to any of Arena's research and development may not meet regulatory requirements or otherwise be sufficient for (or Arena or a collaborator may not pursue) further research and development, regulatory review or approval or continued marketing; Arena's and third parties' intellectual property rights; the timing, success and cost of Arena's research and development and related strategy and decisions; results of clinical trials and other studies are subject to different interpretations and may not be predictive of future results; clinical trials and other studies may not proceed at the time or in the manner expected or at all; having adequate funds; and satisfactory resolution of litigation or other disagreements with others. Additional factors that could cause actual results to differ materially from those stated or implied by Arena's forward-looking statements are disclosed in Arena's filings with the Securities and Exchange Commission. These forward-looking statements represent Arena's judgment as of the time of this release. Arena disclaims any intent or obligation to update these forward-looking statements, other than as may be required under applicable law.

Contact: Arena Pharmaceuticals, Inc.

Craig M. Audet, Ph.D., Senior Vice President,
Operations & Head of Global Regulatory Affairs
caudet@arenapharm.com
858.453.7200, ext. 1612

www.arenapharm.com


                                                             Arena Pharmaceuticals, Inc.

                                                   Condensed Consolidated Statements of Operations

                                                       (In thousands, except per share amounts)


                                                                                                   Three months ended Nine months ended

                                                                                                      September 30,                      September 30,
                                                                                                      -------------                      -------------

                                                                                                                 2015               2014                      2015         2014
                                                                                                                 ----               ----                      ----         ----

                                                                                                       (unaudited)       (unaudited)

    Revenues

    Net product sales                                                                                          $4,884             $5,726                   $15,787      $12,137

    Other Eisai collaborative revenue                                                                           2,065              2,133                     7,414       14,034

    Toll manufacturing                                                                                          1,463                158                     3,199        1,184

    Other collaborative revenue                                                                                   726                147                     4,175          424
                                                                                                                  ---                ---                     -----          ---

      Total revenues                                                                                            9,138              8,164                    30,575       27,779


    Operating Costs & Expenses

    Cost of product sales                                                                                       1,635              1,755                     6,129        4,049

    Cost of toll manufacturing                                                                                  1,584                 81                     3,798        1,124

    Research & development                                                                                     22,072             24,508                    68,241       72,521

    General & administrative                                                                                    9,028              8,029                    26,311       25,198
                                                                                                                -----              -----                    ------       ------

      Total operating costs & expenses                                                                         34,319             34,373                   104,479      102,892


    Interest & Other Income (Expense)

    Interest income                                                                                                37                 16                       105           69

    Interest expense                                                                                          (1,683)           (1,723)                  (5,133)     (5,205)

    Gain from valuation of derivative liabilities                                                                 852              2,593                       474        3,489

    Gain on sale of available-for-sale securities                                                                   0             16,276                         0       49,553

    Other                                                                                                       (443)           (1,625)                      938      (1,240)
                                                                                                                 ----             ------                       ---       ------

      Total interest & other income (expense), net                                                            (1,237)            15,537                   (3,616)      46,666
                                                                                                               ------             ------                    ------       ------

    Net loss                                                                                                $(26,418)         $(10,672)                $(77,520)   $(28,447)
                                                                                                             ========           ========                  ========     ========


    Net loss per share:

    Basic                                                                                                     $(0.11)           $(0.05)                  $(0.32)     $(0.13)
                                                                                                               ======             ======                    ======       ======

    Diluted                                                                                                   $(0.11)           $(0.05)                  $(0.32)     $(0.13)
                                                                                                               ======             ======                    ======       ======


    Shares used in calculating net loss per share:

    Basic                                                                                                     242,257            219,866                   240,033      219,592
                                                                                                              =======            =======                   =======      =======

    Diluted                                                                                                   242,257            219,866                   240,033      219,592
                                                                                                              =======            =======                   =======      =======


                                                                             Arena Pharmaceuticals, Inc.

                                                                      Condensed Consolidated Balance Sheet Data

                                                                                    (In thousands)



                                                                                                                September 30, 2015          December 31, 2014
                                                                                                                ------------------          -----------------

                                                                                                                   (unaudited)                                  (1)

    Assets

      Cash & cash equivalents                                                                                                      $181,280                 $163,209

      Accounts receivable                                                                                                             3,514                    3,712

      Inventory                                                                                                                      10,243                   10,831

      Prepaid expenses & other current assets                                                                                         5,179                    4,144

      Land, property & equipment, net                                                                                                74,752                   82,919

      Intangibles & other non-current assets                                                                                         11,159                   11,570
                                                                                                                                     ------                   ------

           Total assets                                                                                                            $286,127                 $276,385
                                                                                                                                   ========                 ========


    Liabilities & Stockholders' Equity

      Accounts payable & accrued liabilities                                                                                        $21,511                  $49,158

      Total deferred revenues                                                                                                       113,060                  108,302

      Derivative liabilities                                                                                                              0                      474

      Total lease financing obligations & other long-term liabilities                                                                69,355                   71,106

      Total stockholders' equity                                                                                                     82,201                   47,345
                                                                                                                                     ------                   ------

           Total liabilities & stockholders' equity                                                                                $286,127                 $276,385
                                                                                                                                   ========                 ========



    (1)          The Condensed Consolidated Balance
                 Sheet Data has been derived from
                 the audited financial statements
                 as of that date.

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