Shares of drugmaker Arena Pharmaceuticals took a 10% hit in intraday trading after the company reported that Europe's CHMP has asked for more information regarding its obesity drug Belviq. While Arena will have a chance to respond to the committee before an official decision is made, it looks like Belviq's chances for EU approval are deteriorating fast. Investors should also note that Arena's chief rival, VIVUS , was dealt an EU rejection for its drug Qsymia back in September.
In this video, health care analysts Max Macaluso and Brenton Flynn discuss this news in the context of the competitive obesity drug space, and they reflect on the challenges that obesity drugmakers -- including Orexigen Therapeutics -- face in getting their drugs approved across the Atlantic.
The potential market for obesity drugs is massive, but so are the risks. If you're looking for more information on the top two obesity drug players, grab copies of our premium research reports on Arena Pharmaceuticals and VIVUS today. In the reports, our senior biotech analyst, Brian Orelli, Ph.D., breaks down each company's strengths and weaknesses, and explains the critical issues you need to know about. News in this space moves fast, so both reports come with a full year of updates. Click now for exclusive information on Arena and VIVUS.
The article Why Arena Got Crushed Today originally appeared on Fool.com.Brenton Flynn has no position in any stocks mentioned. Max Macaluso, Ph.D. has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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