Arena Pharmaceuticals Provides Corporate Update and Reports Fourth Quarter and Full-Year 2018 Financial Results

- Etrasimod demonstrated clinical response and durable, long-term clinical remission and favorable long-term safety and tolerability in an open-label extension trial

- Completed global license agreement with United Therapeutics for ralinepag, received $800M upfront payment, and eligible to receive up to $400M in milestone payments plus low double-digit tiered royalties

- Multiple first- or best-in-class therapeutics, strong leadership team and liquidity position of over $1.3 billion as of Feb. 1, 2019

SAN DIEGO, Feb. 26, 2019 /PRNewswire/ -- Arena Pharmaceuticals, Inc. (ARNA) today provided a corporate update and reported financial results for the fourth quarter and full-year ended December 31, 2018.

"In 2018 we delivered the steps necessary to position Arena for long-term, sustainable growth by securing a strong cash position, generating important data for our potential first- or best-in-class compounds, and scaling the organization. We kicked off 2019 with exciting data demonstrating etrasimod's long-term efficacy and safety in an open-label extension trial, followed by the completion of the global license deal with United Therapeutics," said Amit D. Munshi, President and CEO of Arena. "We are in a great position and we look forward to continuing to build on the momentum of the last two years."

Pipeline Update

Etrasimod – Next generation, oral, selective sphingosine-1-phosphate (S1P) receptor modulator in development for the treatment of multiple immune and inflammatory diseases

• Ulcerative colitis (UC):
• Crohn's disease (CD):
• Atopic dermatitis (AD):

Olorinab – Oral, peripherally restricted, highly selective, full agonist of cannabinoid receptor type 2 (CB₂) in development for the treatment of visceral pain associated with gastrointestinal (GI) diseases

• Advancing into a Phase 2b clinical program targeting the treatment of irritable bowel syndrome (IBS) pain

APD418 – First-in-class, oral, calcium-independent myofilament derepressor (CMD) for the treatment of decompensated heart failure (DHF)

• Preclinical program advancing

Collaboration and License Agreements Update

• In January 2019, Arena and United Therapeutics closed the Global License Agreement for ralinepag, a potential best-in-class agent for the treatment of pulmonary arterial hypertension. Arena received $800 million upfront and is eligible to receive up to $400 million in regulatory milestone payments plus low double-digit tiered royalties.

Corporate Update

• In December 2018, Arena appointed Manmeet S. Soni as a non-executive director
• In November 2018, Arena appointed Robert Lisicki as Executive Vice President and Chief Commercial Officer, and Paul K. Audhya, MD, MBA, as Senior Vice President, Medical Affairs
• Arena announced expansion into the Boston area

Financial Update

Fourth Quarter 2018 Financial Results

• Revenues totaled $8.6 million, consisting of $6.9 million in collaboration revenue and $1.8 million in royalty revenue
• Research and development expenses totaled $37.9 million
• General and administrative expenses totaled $15.4 million
• Income tax benefit related to a change in our deferred tax asset valuation allowance was $110.3 million
• Net income attributable to stockholders of Arena was $68.7 million, the basic earnings per share was $1.39 per share and the diluted earnings per share was $1.35

Full-Year 2018 Financial Results

• Revenues totaled $18.0 million, consisting of $11.4 million in collaboration revenue and $6.6 million in royalty revenue
• Research and development expenses totaled $115.0 million
• General and administrative expenses totaled $47.7 million
• Income tax benefit related to a change in our deferred tax asset valuation allowance was $110.3 million
• Net loss attributable to stockholders of Arena was $29.4 million, or $0.63 per share

At December 31, 2018, Arena's cash, cash equivalents and investments balance was $528.0 million and approximately 49.4 million shares of Arena common stock were outstanding. As of February 1, 2019 Arena's cash, cash equivalents and investments balance was over $1.3 billion.

Conference Call & Webcast Information
Arena will host a conference call and live webcast with the investment community today, Tuesday, February 26, 2019, at 4:30 p.m. EST to discuss the financial results and provide a corporate update.

When: Tuesday, February 26, 2019, at 4:30 p.m. EST
Dial-in: (877) 643-7155 (United States) or (914) 495-8552 (International)
Conference ID: 1855406

Please join the conference call at least 10 minutes early to register. You can access the live webcast under the investor relations section of Arena's website at: www.arenapharm.com. A replay of the conference call will be archived under the investor relations section of Arena's website for 30 days shortly after the call.

About Arena Pharmaceuticals
Arena Pharmaceuticals is driven to deliver novel, transformational medicines with optimized pharmacology and pharmacokinetics to patients globally. Arena's proprietary pipeline includes multiple potentially first- or best-in-class assets with broad clinical utility. Etrasimod (APD334), with potential utility in a broad range of immune and inflammatory conditions, is being evaluated in late-stage clinical programs in ulcerative colitis (UC) and Crohn's disease, as well as in programs for other indications such as atopic dermatitis. Arena is also evaluating olorinab (APD371) in a Phase 2 program for gastrointestinal pain. Arena continues to assess other earlier research and development stage drug candidates, including APD418 for decompensated heart failure. Arena's licensee, United Therapeutics, is evaluating ralinepag in a Phase 3 program for pulmonary arterial hypertension (PAH).

Arena has additional license agreements and partnerships, including with Everest Medicines Limited (etrasimod in Greater China and select Asian countries), Boehringer Ingelheim International GmbH (undisclosed target – preclinical), Outpost Medicine, LLC (undisclosed target – preclinical), and Eisai Co., Ltd. and Eisai Inc. (BELVIQ^® – marketed product).

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