ARNA analysts

Let's break down who got it right and who got it wrong on VVUS and ARNA.

http://www.streetinsider.com/Trader+Talk/Arena+Pharmaceuticals+%28ARNA%29%3A+Upgraded+to+Overweight+at+J.P.+Morgan/5811273.html

Thumbs up to Cowen & Co. and Piper Jaffray for getting it right, and understanding the importance of safety in FDA approval decisions.

Thumbs down to JPMorgan and Adam Feuerstein of thestreet.com for getting it completely wrong. At least JPMorgan and Adam are smart enough to reverse course on ARNA--after Qnexa's rejection.

Big thumbs down to Rodman & Renshaw analyst Elmer Piros for downgrading ARNA with a price target of $1.

Recall Jonathan Aschoff, a Brean Murray Carret & Co. analyst, at one time had a sell rating on DNDN with a $1.50 price target. DNDN shares recently had a high of over $58.

Is Wall Street crooked? You decide.

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.