SOURCE: Paragon Financial Limited

Paragon Financial Limited

September 20, 2011 08:16 ET

Obesity Drug Makers Mount Comeback

The Paragon Report Provides Equity Research on Arena Pharmaceuticals and VIVUS

NEW YORK, NY--(Marketwire - Sep 20, 2011) - The Paragon Report examines investing opportunities in the Biotechnology Industry and provides equity research on Arena Pharmaceuticals, Inc. (NASDAQ: ARNA) and VIVUS, Inc. (NASDAQ: VVUS). Access to the full company reports can be found at:

Obesity drug makers continue to battle through the approval process, fine tuning their potential blockbuster products, in hopes of finally earning FDA approval. Due to the overwhelming percentage of overweight Americans, an effective and safe weight loss drug is seen to have astronomical earnings potential. The problem is that the FDA has proven to be very hesitant to approve prospective obesity drugs due to both safety and efficacy concerns.

Diet drug makers had a modest rally last week after VIVUS said that it plans to resubmit its application with regulators by the end of October to market its diet-drug Qnexa. The US Food and Drug Administration rejected Qnexa last year, citing concerns that the compound has been linked to certain birth defects.

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VIVUS said it plans to ask for the drug to be approved initially for men and women who cannot bear children. VIVUS' news also propelled shares of Arena, which has also had problems winning FDA approval for their respective diet pills.

Arena's obesity drug, Lorcaserin, was rejected last September after a memo from the FDA stated that the drug did not satisfy the mean efficacy requirements that the FDA has laid down for obesity therapies, and additionally caused tumors in rats. Arena plans to re-file its application by the end of 2011 -- meaning the drug would likely not be available until 2012 at the earliest.

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