The current market potential for Arena Pharmaceuticals’ (ARNA-$4.39)
weight-loss drug Belviq here in the U.S. is approximately $1.0 billion – or
about $315 million net to Arena.
Such bullish estimates, however, assume two variables not
within current reach: (1) Add-on therapy for phentermine; and (2) broad reimbursement
coverage by commercial and Medicare plans.
In a recent press release, Arena boasted that “Belviq is now
covered by several prominent health plans and PBMs, including, among others,
Express Scripts (including its legacy Express Scripts and Medco operations),
Tufts, Health Alliance Plan, Excellus BCBS, Highmark BCBS, BCBS of Michigan,
and BCBS of North Carolina and Healthnet (California).”
Jack Lief, co-founder and CEO of Arena, told analysts on the
second-quarter conference call, too, that “as much as 50% [of insurance plans]”
would likely reimburse for Belviq prescriptions by April 2014. Recent channel
checks suggest that this statement is inaccurate at best, misleading at worst.
Read more at YCharts: How Arena’s “$3 Billion” Belviq Withered
Editor David J Phillips does not hold a
financial interest in any stocks mentioned in this article. The 10Q Detective
has a Full Disclosure Policy.
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