SAN DIEGO, Jan. 4, 2017 /PRNewswire/ -- Arena
Pharmaceuticals, Inc. (NASDAQ: ARNA) today announced that it
has amended its BELVIQ® (lorcaserin HCl) marketing and supply
agreement with Eisai Co., Ltd. and Eisai Inc. (collectively,
"Eisai"). Under the revised agreement, Eisai is acquiring global
commercialization rights to BELVIQ, including in the territories
retained by Arena under the parties' prior agreement, with control
over global development and commercialization decisions, and is
responsible for all lorcaserin development expenses going
forward.
The financial terms of the revised agreement are expected to
provide Arena with $23 million of
cash payments and over $80 million of
potential cost relief on current lorcaserin development
obligations.
Arena will continue to be eligible to receive royalty payments
on net sales of BELVIQ and participate in the upside potential of
lorcaserin from additional geographies and clinical trials such as
the ongoing cardiovascular outcomes trial, CAMELLIA.
"We would like to thank Eisai for its continued efforts on
BELVIQ," said Amit Munshi, President
and Chief Executive Officer of Arena. "This amended agreement
allows Arena to focus more of its financial resources on our
clinical stage programs, with a goal of developing first- or
best-in-class assets with our three proprietary compounds, from
which we expect results from multiple Phase 2 clinical trials later
this year."
Under the revised agreement, Arena will:
- Transfer to Eisai certain intellectual property, assets and
records related to lorcaserin
- Assign its rights under the agreements with Ildong
Pharmaceutical Co. LTD., Abic Marketing Limited and CY Biotech
Company Limited to Eisai
- Continue to manufacture lorcaserin at its facility in
Switzerland and sell finished
product to Eisai for marketing and distribution
- Provide for technology transfer to Eisai for the option to
manufacture lorcaserin
Eisai will be responsible for all further development, sales and
marketing, regulatory and patent expenses.
Under the revised agreement,
- Arena is eligible to receive approximately $23 million over a two-year period for inventory
and ongoing support for its manufacturing obligations, plus
payments comparable to a contract manufacturer for continuing to
supply lorcaserin
- Arena will no longer incur lorcaserin clinical development
expenses, which could have exceeded $80
million over the next several years
- Arena is eligible to receive royalty payments of 9.5% on annual
global net sales of lorcaserin less than or equal to $175 million, 13.5% on annual global net sales
greater than $175 million but less
than or equal to $500 million and
18.5% on annual global net sales greater than $500 million
- Arena is eligible to receive $26
million in potential sales and regulatory milestones
including $25 million upon global net
sales reaching $250 million in any 12
month period and $1 million for
approval in Brazil.
Conference Call & Webcast
The Company will host a
conference call and live webcast with the investment community
today, Wednesday, January 4, 2017 at
4:30 p.m. ET to discuss the
lorcaserin agreement amendment.
When: January 4, 2017,
4:30 p.m. ET
Dial-in: (877) 643-7155 (United
States) or (914) 495-8552 (International)
Conference ID: Arena Pharmaceuticals
Please join the conference call at least 10 minutes early to
register.
You can access the live webcast under the investor relations
section of Arena's website at: www.arenapharm.com. A
replay of the conference call will be archived under the investor
relations section of Arena's website for 30 days shortly after the
call.
About Arena Pharmaceuticals
We are a biopharmaceutical company focused on developing novel,
small molecule drugs across a range of therapeutic areas. We have
three primary proprietary investigational clinical programs:
etrasimod (APD334) in Phase 2 evaluation for ulcerative colitis,
APD371 entering Phase 2 evaluation for the treatment of pain
associated with Crohn's disease, and ralinepag (APD811) in Phase 2
evaluation for pulmonary arterial hypertension (PAH). Additionally,
we have collaborations with the following pharmaceutical companies:
Eisai Co., Ltd. and Eisai Inc. (commercial stage), Axovant Sciences
Ltd. (Phase 2 candidate), and Boehringer Ingelheim International
GmbH (preclinical candidate).
Our US operations are located in San
Diego, California. Our primary clinical operations are
located in Zug, Switzerland, and
our commercial manufacturing for BELVIQ is located in Zofingen,
Switzerland.
Forward-Looking Statements
Certain statements in this
press release are forward-looking statements that involve a number
of risks and uncertainties. Such forward-looking statements
include, without limitation, statements about cash payments and
cost relief, activities to be performed by Arena or Eisai,
responsibilities of Arena or Eisai, the significance of the revised
agreement with Eisai, Arena's focus and goals, and timing and other
expectations for Phase 2 clinical trials. Words such as "will",
"expect", "may," "goal," "potential" and similar expressions are
intended to identify forward-looking statements, though not all
forward-looking statements necessarily contain these identifying
words. For such statements, Arena claims the protection of
the Private Securities Litigation Reform Act of 1995. Actual events
or results may differ materially from Arena's expectations. Factors
that could cause actual results to differ materially from the
forward-looking statements include, but are not limited to, risks
related to: the implementation and continuation of the revised
agreement with Eisai; dependence on counterparty performance; risks
related to commercializing drugs, including regulatory,
manufacturing and supply issues and the availability and use of
BELVIQ; cash and revenues generated from BELVIQ, including the
impact of competition; government and commercial reimbursement and
pricing decisions; unexpected or unfavorable new data; and the
ability to defend patent rights. Additional factors that could
cause actual results to differ materially from those stated or
implied by Arena's forward-looking statements are disclosed in
Arena's filings with the Securities and Exchange Commission. These
forward-looking statements represent our judgment as of the time of
this press release. Arena disclaims any intent or obligation to
update these forward-looking statements, other than as may be
required under applicable law.
Contact: Arena Pharmaceuticals, Inc.
Kevin R. Lind, Chief Financial
Officer
klind@arenapharm.com
858.210.3636
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SOURCE Arena Pharmaceuticals, Inc.