Arena Pharmaceuticals price target raised to $88 from $68 at Cantor Fitzgerald
Cantor Fitzgerald analyst Alethia Young raised the firm's price target on Arena Pharmaceuticals (ARNA) to $88 from $68 and reiterates an Overweight rating on the shares. Bristol Meyers' (BMY) positive topline data this morning from the pivotal study of its sphingosine-1-phosphate ozanimod in ulcerative colitis is a "positive readthrough" to Arena's etrasimod ulcerative colitis program, Young tells investors in a research note. The analyst increased her probability of success 80% from 75% and is now "very confident" in the Phase 3 success of etrasimod. Young also thinks that S1P1 as a class is shaping up to be a "big commercial opportunity" and increased her peak sales to $3B. Arena shares to be up at least 10% today on Bristol's news given that ozanimod and etrasimod are both S1P1s and this is the first positive Phase 3 readout for the class in ulcerative colitis, says the analyst. Arena Pharmaceuticals in morning trading is up 13%, or $7.49, to $6.19.