Friday, November 29, 2013

The Good News, Bad News for Belviq: …Now the Good News

Belviq, Arena Pharmaceuticals' (NASDAQ: ARNA) lead obesity drug, continues to rack up mediocre sales numbers as sales performance continues to lag expectations. Fans of Belviq and Arena still see the drug as a potential blockbuster but questions remain as to how Belviq can still meet lofty pre-launch predictions.

In an earlier article, I noted that Belviq will likely need more time to fit into accepted standards of care and many physicians will simply need more exposure to Belviq before they feel comfortable exposing obesity patients to a new drug. In the meantime, physicians will still rely overwhelmingly on tried-and-true approaches including diet and exercise.

That being said, there is ample good news for Belviq into the mid-to-long term. Arena and marketing partner Eisai (NASDAQOTH: ESALY) remain confident in Belviq's potential and have recently moved to up marketing efforts significantly. Furthermore, physicians will likely warm up over time to a new medication option in an area that is short on decent drugs.

A much needed pep talk
Recent actions on the part of Arena and Eisai seem to indicate that there is a renewed effort to overcome some of the barriers Belviq has faced since June. In particular, Eisai recently announced intentions to double Belviq's sales force by December.

Given that many physicians still need convincing before they switch patients to a new and unfamiliar medication, this can only be seen as a good thing. Additionally, Belviq's label still carries warnings against rare but potentially fatal heart valve and neurological side effects -- increased outreach to physicians would likely go a long way to lessen fears surrounding its safety.




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