SOURCE: The Bedford Report

The Bedford Report

December 09, 2010 08:46 ET

Improved Guidance From FDA Reduces Risk in Drug Makers' Stocks

The Bedford Report Provides Analyst Research on Arena Pharmaceuticals & Avanir Pharmaceuticals

NEW YORK, NY--(Marketwire - December 9, 2010) - While by no means perfect, Drug Manufacturers' relationships with the FDA are gradually improving. A recent survey from PricewaterhouseCoopers found that life sciences firms believe that industry-FDA relationships have bettered since Obama took office. In fact, 80% of those surveyed said in the last two years the FDA has provided better guidance about its expectations. Better guidance leads to fewer letdowns for drug manufacturers, and less risk for speculative investors. The Bedford Report examines the outlook for companies in the Drug Manufacturers-Others Industry and provides research reports on Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) and Avanir Pharmaceuticals, Inc. (NASDAQ: AVNR). Access to the full company reports can be found at:

www.bedfordreport.com/2010-12-ARNA

www.bedfordreport.com/2010-12-AVNR

Even with better guidance, the FDA still does provide the occasional surprise to investors. During the summer, obesity drug manufacturers were one of the more popular speculative plays. Due to the overwhelming percentage of overweight Americans, an effective and safe weight loss drug was seen to have astronomical earnings potential. However after an FDA advisory panel rejected obesity drugs from Vivus and Arena -- Arena's anti-obesity drug, Lorcaserin was considered the most likely drug to receive FDA approval due to its mild side effects -- speculation in obesity drugs all but disappeared, and shares were sent plummeting. Then on Tuesday, a Food and Drug Administration committee voted 13 to 7 that the benefits of Orexigen Therapeutics' new obesity drug Contrave outweigh the potential risks. The news created a significant rally for all diet drug makers.

The Bedford Report releases regular market updates on the Drug Manufacturers-Others Industry so investors can stay ahead of the crowd and make the best investment decisions to maximize their returns. Take a few minutes to register with us for free at www.bedfordreport.com and get exclusive access to our numerous analyst reports and industry newsletters.

According to PricewaterhouseCoopers' survey of the life sciences sector, most companies believe that although getting better, the FDA has plenty of room to improve. The majority of companies in the survey believe that the FDA is not keeping up with advances in technology. Moreover, 60 percent of companies surveyed expressed frustration that FDA had changed its position during a review, while forty percent feel that some products were denied because of FDA's inadequate review resources.

The Bedford Report provides Analyst Research focused on equities that offer growth opportunities, value, and strong potential return. We strive to provide the most up-to-date market activities. We constantly create research reports and newsletters for our members. The Bedford Report has not been compensated by any of the above mentioned companies. We act as an independent research portal and are aware that all investment entails inherent risks. Please view the full disclaimer at: http://www.bedfordreport.com/disclaimer.

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