Stocks To Watch: Arena Pharmaceuticals, Inc. [NASDAQ: ARNA] held its value in Wednesday’s session. This was in spite of a meltdown across the equity markets. Most stocks were in the red, and the NASDAQ closed lower by 0.31%. The S&P 500, the Dow also closed lower. ARNA gained marginally by 0.32% to close the day at $53.65. The stock has been resilient even after it announced wider Q2 losses a week ago.
In reporting its Q2 earnings, the company reported that it had an EPS loss of $1.24. It was a figure way higher than what analysts were expecting. The consensus analyst expectation was a loss of about $1.04. The company’s total revenues also dropped by roughly 75%, when compared to the last financial year. Nonetheless, it recorded top-line growth in Q2. The company continues to invest heavily in research and development. Its R&D expenditure has risen to $51.2 million in Q2. This is 91.7% higher than last year’s R&D investment. Other related expenses have also gone up. For instance, administrative expenses shot up by 76.9% to 18.4 million.
From the charts, the stock was trading between $52.58 and $54.26 in Wednesday’s session. At the close of trading, the company had 439,525 shares traded, and it’s market capitalization stood at $2.673 billion. In Thursday’s session, its price action could be influenced by the overall trajectory in the entire market. Global stock markets have dropped, amid increased fears of a recession. If U.S stocks open lower due to the decreased optimism in the equity markets, then it could weigh on individual stocks. However, if U.S markets brave the uncertainty and open in positive territory, individual stocks could recover in the day. A stock like ARNA, which was resilient in yesterday’s trading session could possibly close higher. It is one of the largest Cannabis Company’s and as the marijuana market grows, it stands to gain.
About Arena Pharmaceuticals Inc
Arena Pharmaceuticals is a California based Biotechnology Company. The company is focused on the provision of novel medicines. This includes the provision of cannabis-based medicines. It has been involved in clinical programs for the treatment of hypertension, Crohn’s disease among others. For instance, the company’s cannabis-based APD371 is used as a painkiller for Crohn’s disease.