Boston, MA 04/07/2014 (wallstreetpr) – For pharmaceutical companies, coming up with a good drug is one thing and making the most out of the drug is another. In fact, in most cases, great drugs fail to turn anticipated value mostly due to poor marketing strategies. That being the case, Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) seems to have come to the realization that unless it takes proactive steps to expand the market share of its anti-obesity drug Belviq, it might as well miss out on a great opportunity.
Thus, the company has lined up strategies to ensure that sales for the drug improve with quarter after quarter. The company is looking to generate minimum sales of $100 million from the drug, or up to $150 million in 2014. In order to achieve this goal, the company has increased its sales force and lined up television ads which are expected to start in the next couple of weeks.
Already revenue from sale of Belviq is tracking well. Sales are showing encouraging increase trend, however, many markets are still left out in the current distribution network. And this is where opportunity for more sales lies. If Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) is able to bring its Belviq 2014 sales above $150 million, that will be a significant boost for the stock and even confirm the fact that the drug could become a blockbuster, if properly monetized.
Smoking cessation market
Talk about monetization and Arena and its marketing partner Eisai Co., Ltd (ADR) (OTCMKTS:ESALY) are keen on expanding the treatment label of Belviq. Arena last week made a regulatory filing, disclosing that Belviq was being studied for its potential as an anti-smoking solution. The study could last about 12 weeks, capturing nearly 600 patients. Although the market of smoking cessation aids is almost crowded, there is still big opportunity for solutions which prove to be more effective than available options.
If the smoking cessation study proves successful, it will be a big boost for Arena Pharmaceuticals, Inc. (NASDAQ:ARNA), as it will be able to expand use of the drug, leading to more revenue.
Better reasons to believe
Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) may not already be a great stock, and this very fact is good reason enough to see that there is potential in the stock. More aggressive marketing of Belviq and expansion of its label should lead to higher revenue. The company’s disciplined cost and expenses controls will be able to ensure that higher earnings are attained for the increased sales.
