Taking advantage of its stock’s hot position this week, Arena $ARNA is following its promising Phase II data with a public offering that should bring in $353 million for the company.
The company offered 8.5 million shares of its stock at $41.50 per share. That’s not a bad deal for Arena, considering its shares were going for $30 and some change just days ago. But the company’s stock hockey sticked Tuesday following Arena’s announcement that its ulcerative colitis drug etrasimod, a once-daily oral S1P receptor modulator, performed well in Phase II trials.
The drug is now considered a rival to the blockbuster hopeful ozanimod, which was the subject of Celgene’s $7.2 billion buyout of Receptos back in 2015. It’s been billed as a potential $1 billion-plus per year asset, but its future went cloudy after the FDA kicked back Celgene’s marketing application just last month.
In the recent Phase II study, Arena reported patients on the 2-mg dose of etrasimod had statistically significant improvements over the placebo in all primary, secondary, and clinical remission endpoints.
Now Arena is banking on the good news. The company’s offering, which will close on March 26, will finance the company’s Phase III trials of both etrasimod and its pulmonary arterial hypertension drug ralinepag, which also showed promise in Phase II trials.
As of press time, Arena’s stock was trading at $43.30 per share, down about 1.5% from yesterday’s close.
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