Arena Pharmaceuticals receives $60 million from Deerfield

Shares in ARNA will take a hit temporarily this morning from the dilution. But longer-term, this financing will be beneficial for the following reasons:

1) it reduces the debt load by $30 million
2) it delays one payment for 2 years
3) it adds $30 million of cash to ARNA's coffers
4) it strengthens Deerfield's equity position, which is bullish as Deerfield has insider knowledge into Lorcaserin's New Drug Application (NDA). Deerfield is all in.

http://www.prnewswire.com/news-releases/arena-pharmaceuticals-to-receive-60-million-from-deerfield-management-100100874.html

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Disclosure: long ARNA shares, short January put options.