NEW YORK, NY / ACCESSWIRE / November 16, 2018 / Pharmaceutical companies Arena Pharmaceuticals and Sonoma Pharmaceuticals were in the green on Thursday. While Sonoma did not have any news to note, Arena Pharmaceuticals announced that it has entered into a lucrative licensing agreement with United Therapeutics.
MER Initiates Coverage on:
Arena Pharmaceuticals, Inc. https://marketedgereport.com/report/ARNA/
Sonoma Pharmaceuticals, Inc. https://marketedgereport.com/report/SNOA/
Arena Pharmaceuticals, Inc. shares were up 22.62% yesterday on around 4.7 million shares traded. The pharmaceutical company saw its shares rise after Wall Street learned that it has entered into a licensing agreement with United Therapeutics under which United will license pulmonary arterial hypertension candidate treatment ralinepag from Arena in exchange for an $800 million up-front cash payment. As part of the agreement, Arena will also have the right to receive $400 million in future milestone payments as well as tiered royalties in the low double-digit percentages, while United will have exclusive worldwide rights to the drug. “We believe ralinepag has the potential to transform the treatment of PAH,” said Amit D. Munshi, President and Chief Executive Officer of Arena. “We are thrilled to partner with United Therapeutics, based on their long-standing, deep commitment to the PAH community. This transaction represents a significant milestone in the development of ralinepag and will strategically position Arena to aggressively advance our best-in-class pipeline, anchored by etrasimod and olorinab, with the focus and resources essential for long-term success.”
Access MER’S Arena Pharmaceuticals, Inc. Research Report at: https://marketedgereport.com/report/ARNA/
Sonoma Pharmaceuticals, Inc. shares closed up 13.21% on almost 5.7 million shares traded yesterday. There was no news from the company but it was about a week ago that Sonoma reported record revenue in the second quarter. CEO James Schutz, said on the earnings call, “Total revenue was $4.9 million. $4.9 million is a record-high revenue for us and we think we’re just getting started. That number is up 14% versus the same period last year and up 13% just since the June quarter. EBITDA, which is defined as earnings before interest, taxes, depreciation and amortization was a negative $1.95 million. Most financial experts believe that EBITDA is a good proxy for operating cash flow. And for those investors who followed Sonoma, you heard us say repeatedly, we’re pushing towards profitability and as our revenue increases, our EBITDA loss will strength. Less than a $2 million loss in this quarter in EBITDA is a step in the right direction. Cash for the quarter closed to $4 million. The good news behind the numbers from this quarter is that 4 out of 5 of Sonoma’s business units continue to be profitable and showed solid growth. In addition, we’ve made progress in our U.S. dermatology net profitability while growing quarter-over-quarter net revenue.”
Access MER’S Sonoma Pharmaceuticals, Inc. Research Report at: https://marketedgereport.com/report/SNOA/
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