NEW YORK, Oct. 1, 2010 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors of Arena Pharmaceuticals, Inc. ("Arena" or the "Company") (Nasdaq:ARNA) during the period of December 8, 2008 – September 16, 2010 (the "Class Period"). Such investors are advised to contact Nicola Brown at 888-476-6529 or info@pomlaw.com.
Arena is a biopharmaceutical company focused on discovering, developing and commercializing oral drugs that target G protein-coupled receptors. The Company's principal drug in development is Lorqess, an experimental weight loss drug. The investigation concerns on whether the Company misrepresented to investors that the New Drug Application for Lorqess was based on extensive and robust data and that the drug's combination of efficacy, safety and tolerability would position the drug candidate as first-line therapy for weight management without disclosing certain health risks associated with the drug.
On September 14, 2010, the Food and Drug Administration ("FDA") issued a briefing document in advance of its advisory panel meeting in which the agency questioned both the safety and efficacy of Lorqess. As a result of this revelation, Arena common stock fell $2.72 per share or 40%. Then, on September 16, 2010, the FDA advisory panel voted 9 to 5 against approval of Lorqess, in large part because of the results of rat carcinogenicity studies, which included carcinogenicity signals in the form of mammary tumors, and the modest therapeutic benefits associated with Lorqess. On this news, Arena's stock fell another $1.75 per share or 40% to close at $1.99 per share on September 17, 2010.
The Pomerantz Firm, with offices in New York, Chicago, Washington, D.C., Columbus, Ohio and Burlingame, California, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.