Cowen is bullish on Arena Pharmaceuticals

Phil Nadeau, biotech analyst for Cowen & Co., is bullish on ARNA. He sees what I've been saying for over a year: a deeply undervalued company with a short-term catalyst in potential FDA approval for Lorcaserin (anti-obesity drug) and long-term viability (deep drug pipeline, valuable intellectual property, and experienced management team).

Unlike some of his peers, Nadeau has a scientific background with a Ph.D. in neurobiology from Harvard University and an B.S./M.S. in electrical engineering and computer science from MIT. Hence, I give his opinion more weight than a captured journalism hack with a degree in political science, whose only function in life is to bash solid biotech companies with promising therapeutics. Adam, are you listening?

http://www.businessweek.com/news/2010-07-01/eisai-will-sell-arena-s-weight-loss-drug-in-the-u-s-.html

The deal was seen as favorable to Arena by Phil Nadeau, an analyst for Cowen & Co. in New York, because “they preserve for Arena a good amount of lorcaserin’s expected profits, without requiring Arena to shoulder any of the marketing costs.” Nadeau expects the company to outperform the Nadsdaq by 15 percent to 20 percent over the next 12 months, he said in a note today to investors.