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Arena Pharmaceuticals

DB:RN3N
Snowflake Description

Flawless balance sheet and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
RN3N
DB
$2B
Market Cap
  1. Home
  2. DE
  3. Pharmaceuticals & Biotech
Company description

Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide. The last earnings update was 50 days ago. More info.


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RN3N Share Price and Events
7 Day Returns
-9.2%
DB:RN3N
-1.4%
DE Biotechs
2.4%
DE Market
1 Year Returns
23.7%
DB:RN3N
-10.6%
DE Biotechs
-6.2%
DE Market
RN3N Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Arena Pharmaceuticals (RN3N) -9.2% -3.7% 1.7% 23.7% 136.3% -10.2%
DE Biotechs -1.4% 2.6% -7.7% -10.6% 54.2% 8%
DE Market 2.4% 3% 7.4% -6.2% 9.6% 14.1%
1 Year Return vs Industry and Market
  • RN3N outperformed the Biotechs industry which returned -10.6% over the past year.
  • RN3N outperformed the Market in Germany which returned -6.2% over the past year.
Price Volatility
RN3N
Industry
5yr Volatility vs Market

Value

 Is Arena Pharmaceuticals undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Arena Pharmaceuticals to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Arena Pharmaceuticals.

DB:RN3N Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:RN3N
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Biotechs Unlevered Beta Simply Wall St/ S&P Global 1.45
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.448 (1 + (1- 21%) (2.42%))
1.318
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.32
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.318 * 5.96%)
8.09%

Discounted Cash Flow Calculation for DB:RN3N using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Arena Pharmaceuticals is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:RN3N DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.09%)
2019 559.03 Analyst x3 517.21
2020 -216.20 Analyst x3 -185.06
2021 -166.37 Analyst x3 -131.75
2022 -54.00 Analyst x1 -39.57
2023 554.00 Analyst x1 375.55
2024 934.06 Est @ 68.6% 585.82
2025 1,383.25 Est @ 48.09% 802.65
2026 1,849.85 Est @ 33.73% 993.09
2027 2,287.91 Est @ 23.68% 1,136.38
2028 2,668.73 Est @ 16.64% 1,226.37
Present value of next 10 years cash flows $5,280.69
DB:RN3N DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $2,668.73 × (1 + 0.23%) ÷ (8.09% – 0.23%)
$34,040.52
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $34,040.52 ÷ (1 + 8.09%)10
$15,642.74
DB:RN3N Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,280.69 + $15,642.74
$20,923.43
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $20,923.43 / 49.46
$423.01
DB:RN3N Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:RN3N represents 0.87574x of NasdaqGS:ARNA
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.87574x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 423.01 x 0.87574
€370.45
Value per share (EUR) From above. €370.45
Current discount Discount to share price of €38.59
= -1 x (€38.59 - €370.45) / €370.45
89.6%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Arena Pharmaceuticals is available for.
Intrinsic value
>50%
Share price is €38.59 vs Future cash flow value of €370.45
Current Discount Checks
For Arena Pharmaceuticals to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Arena Pharmaceuticals's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Arena Pharmaceuticals's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Arena Pharmaceuticals's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Arena Pharmaceuticals's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:RN3N PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in USD $-0.61
NasdaqGS:ARNA Share Price ** NasdaqGS (2019-04-18) in USD $44.06
Europe Biotechs Industry PE Ratio Median Figure of 30 Publicly-Listed Biotechs Companies 22.41x
Germany Market PE Ratio Median Figure of 422 Publicly-Listed Companies 19.67x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Arena Pharmaceuticals.

DB:RN3N PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:ARNA Share Price ÷ EPS (both in USD)

= 44.06 ÷ -0.61

-72.55x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arena Pharmaceuticals is loss making, we can't compare its value to the Europe Biotechs industry average.
  • Arena Pharmaceuticals is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Arena Pharmaceuticals's expected growth come at a high price?
Raw Data
DB:RN3N PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -72.55x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
-39.7%per year
Europe Biotechs Industry PEG Ratio Median Figure of 22 Publicly-Listed Biotechs Companies 1.3x
Germany Market PEG Ratio Median Figure of 270 Publicly-Listed Companies 1.58x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Arena Pharmaceuticals, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Arena Pharmaceuticals's assets?
Raw Data
DB:RN3N PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in USD $12.27
NasdaqGS:ARNA Share Price * NasdaqGS (2019-04-18) in USD $44.06
Germany Biotechs Industry PB Ratio Median Figure of 15 Publicly-Listed Biotechs Companies 3.71x
Germany Market PB Ratio Median Figure of 570 Publicly-Listed Companies 1.85x
DB:RN3N PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:ARNA Share Price ÷ Book Value per Share (both in USD)

= 44.06 ÷ 12.27

3.59x

* Primary Listing of Arena Pharmaceuticals.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Arena Pharmaceuticals is good value based on assets compared to the DE Biotechs industry average.
X
Value checks
We assess Arena Pharmaceuticals's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Biotechs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Biotechs industry average (and greater than 0)? (1 check)
  5. Arena Pharmaceuticals has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Arena Pharmaceuticals expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-39.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Arena Pharmaceuticals expected to grow at an attractive rate?
  • Arena Pharmaceuticals's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Arena Pharmaceuticals's earnings are expected to decrease over the next 1-3 years, this is below the Germany market average.
  • Arena Pharmaceuticals's revenues are expected to decrease over the next 1-3 years, this is below the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:RN3N Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:RN3N Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts -39.7%
DB:RN3N Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts -5.7%
Germany Biotechs Industry Earnings Growth Rate Market Cap Weighted Average 47.5%
Germany Biotechs Industry Revenue Growth Rate Market Cap Weighted Average 26%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.5%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:RN3N Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:RN3N Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 408 331 84 2
2022-12-31 115 -139 -216 3
2021-12-31 11 -101 -275 5
2020-12-31 9 -129 -246 7
2019-12-31 809 578 548 6
DB:RN3N Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-12-31 18 -132 -29
2018-09-30 25 -105 -111
2018-06-30 24 -92 -112
2018-03-31 21 -80 -104
2017-12-31 21 -67 -95
2017-09-30 60 -69 -31
2017-06-30 76 -71 -9
2017-03-31 84 -61 -12
2016-12-31 92 -61 -12
2016-09-30 46 -78 -92
2016-06-30 36 -85 -106
2016-03-31 36 -93 -105

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Arena Pharmaceuticals's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Arena Pharmaceuticals's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:RN3N Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Arena Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RN3N Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 0.75 1.60 -0.10 2.00
2022-12-31 -3.99 -3.41 -4.71 3.00
2021-12-31 -5.23 -4.38 -5.99 5.00
2020-12-31 -4.59 -3.19 -5.50 8.00
2019-12-31 10.88 12.07 8.80 6.00
DB:RN3N Past Financials Data
Date (Data in USD Millions) EPS *
2018-12-31 -0.61
2018-09-30 -2.67
2018-06-30 -2.69
2018-03-31 -2.81
2017-12-31 -2.87
2017-09-30 -0.98
2017-06-30 -0.34
2017-03-31 -0.51
2016-12-31 -0.49
2016-09-30 -3.77
2016-06-30 -4.35
2016-03-31 -4.34

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Arena Pharmaceuticals will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Arena Pharmaceuticals's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Arena Pharmaceuticals has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Arena Pharmaceuticals performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Arena Pharmaceuticals's growth in the last year to its industry (Biotechs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Arena Pharmaceuticals does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Arena Pharmaceuticals's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Arena Pharmaceuticals's 1-year growth to the Europe Biotechs industry average as it is not currently profitable.
Earnings and Revenue History
Arena Pharmaceuticals's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Arena Pharmaceuticals Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:RN3N Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 17.97 -28.57 47.72
2018-09-30 24.69 -111.28 40.58
2018-06-30 23.53 -111.92 37.23
2018-03-31 21.43 -103.56 33.97
2017-12-31 21.34 -94.53 30.34
2017-09-30 59.54 -31.36 25.64
2017-06-30 76.36 -8.76 26.81
2017-03-31 83.98 -12.48 28.13
2016-12-31 92.16 -11.92 27.53
2016-09-30 46.35 -91.55 33.63
2016-06-30 36.25 -105.61 34.07
2016-03-31 35.92 -105.23 34.45
2015-12-31 13.40 -110.71 30.28
2015-09-30 39.77 -109.58 35.25
2015-06-30 38.79 -93.84 34.25
2015-03-31 42.41 -59.55 34.54
2014-12-31 36.97 -60.51 34.14
2014-09-30 34.30 -51.91 33.27
2014-06-30 29.71 -58.43 33.00
2014-03-31 85.84 -25.81 32.47
2013-12-31 81.39 -19.44 31.68
2013-09-30 76.81 -17.26 30.88
2013-06-30 74.72 -15.58 30.51
2013-03-31 27.77 -77.78 27.12
2012-12-31 27.59 -88.30 26.23
2012-09-30 27.73 -90.70 24.22
2012-06-30 29.70 -97.92 22.85

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Arena Pharmaceuticals has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Arena Pharmaceuticals has efficiently used its assets last year compared to the Europe Biotechs industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Arena Pharmaceuticals improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Arena Pharmaceuticals's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Biotechs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Arena Pharmaceuticals has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Arena Pharmaceuticals's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Arena Pharmaceuticals's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Arena Pharmaceuticals is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Arena Pharmaceuticals's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Arena Pharmaceuticals's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 8.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Arena Pharmaceuticals Company Filings, last reported 3 months ago.

DB:RN3N Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 606.26 52.71 445.63
2018-09-30 531.32 58.72 561.62
2018-06-30 558.84 59.77 592.41
2018-03-31 584.14 60.79 629.12
2017-12-31 207.14 61.75 247.08
2017-09-30 218.12 62.68 278.74
2017-06-30 82.52 63.58 130.76
2017-03-31 26.66 64.45 79.53
2016-12-31 40.40 65.27 90.71
2016-09-30 4.08 66.06 101.63
2016-06-30 13.56 66.82 121.99
2016-03-31 37.56 67.56 139.53
2015-12-31 53.54 68.25 156.18
2015-09-30 82.20 68.91 181.28
2015-06-30 107.36 69.55 216.70
2015-03-31 128.93 70.17 240.98
2014-12-31 47.35 70.74 163.21
2014-09-30 76.29 71.29 188.33
2014-06-30 102.84 71.82 219.11
2014-03-31 126.06 72.33 256.51
2013-12-31 91.86 72.79 221.88
2013-09-30 112.07 73.24 180.70
2013-06-30 124.94 73.68 178.91
2013-03-31 80.42 74.09 136.25
2012-12-31 98.64 74.46 156.09
2012-09-30 117.27 74.82 165.77
2012-06-30 107.78 75.16 143.81
  • Arena Pharmaceuticals's level of debt (8.7%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (78.9% vs 8.7% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Arena Pharmaceuticals has sufficient cash runway for more than 3 years based on current free cash flow.
  • Arena Pharmaceuticals has sufficient cash runway for more than 3 years if free cash flow continues to grow at historical rates of 9.7% each year.
X
Financial health checks
We assess Arena Pharmaceuticals's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Arena Pharmaceuticals has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Arena Pharmaceuticals's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Arena Pharmaceuticals dividends. Estimated to be 0% next year.
If you bought €2,000 of Arena Pharmaceuticals shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Arena Pharmaceuticals's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Arena Pharmaceuticals's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:RN3N Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
Europe Biotechs Industry Average Dividend Yield Market Cap Weighted Average of 9 Stocks 0.9%
Germany Market Average Dividend Yield Market Cap Weighted Average of 325 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:RN3N Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 2.00
2019-12-31 0.00 2.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Arena Pharmaceuticals has not reported any payouts.
  • Unable to verify if Arena Pharmaceuticals's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Arena Pharmaceuticals's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Arena Pharmaceuticals has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Arena Pharmaceuticals's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Arena Pharmaceuticals's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Arena Pharmaceuticals afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Arena Pharmaceuticals has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Arena Pharmaceuticals's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Amit Munshi
COMPENSATION $2,915,945
AGE 50
TENURE AS CEO 2.9 years
CEO Bio

Mr. Amit D. Munshi has been the Chief Executive Officer and President of Arena Pharmaceuticals, Inc. since May 11, 2016. Mr. Munshi serves as Non-Executive Chairman of Enterprise Therapeutics Ltd since March 2019. Mr. Munshi served as an Interim Principal Financial Officer of Arena Pharmaceuticals, Inc. from May 11, 2016 to June 15, 2016. Prior to Arena Pharmaceuticals, he served as the Chief Executive Officer, President and Director of EPIRUS Biopharmaceuticals, Inc. from May 2012 to May 6, 2016. Mr. Munshi served as the President and Chief Executive Officer at Percivia LLC (Sold To Johnson & Johnson) from 2011 to 2012. He co-founded Kythera Biopharmaceuticals, Inc. in 2005 and served as its Chief Business Officer and Advisor from 2005 to 2010. He was an Advisor of Cynvenio Biosystems, Inc. He held leadership positions at Amgen Inc. Globally In Multiple Product Management, General Management and Corporate Development Positions from 1997 to 2005, including General Manager of European Nephrology. Mr. Munshi has more than 28 years of global biopharmaceutical industry experience in executive management, business development, product development and portfolio management, and has served on several private and public company boards. Mr. Munshi serves on the boards of Oxeia Biopharmaceuticals, Inc., and Cytrellis Biosystems, Inc., both privately held companies. He has been a Director at Arena Pharmaceuticals, Inc. since June 13, 2016. He has been a Director at Pulmatrix, Inc. since June 2017. He served as a Director at Cynvenio Biosystems, Inc. since August 3, 2011. Mr. Munshi holds a BA in History and a BS in Economics from the University of California at Riverside and an MBA from the Peter F. Drucker & Masatoshi Ito Graduate School of Management at Claremont Graduate University.

CEO Compensation
  • Amit's compensation has been consistent with company performance over the past year.
  • Amit's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Arena Pharmaceuticals management team in years:

2
Average Tenure
50
Average Age
  • The tenure for the Arena Pharmaceuticals management team is about average.
Management Team

Amit Munshi

TITLE
President
COMPENSATION
$3M
AGE
50
TENURE
2.9 yrs

Kevin Lind

TITLE
Executive VP & CFO
COMPENSATION
$2M
AGE
42
TENURE
2.8 yrs

Steven Spector

TITLE
Executive VP
COMPENSATION
$2M
AGE
53
TENURE
17.5 yrs

Vince Aurentz

TITLE
Chief Business Officer & Executive VP
COMPENSATION
$2M
AGE
50
TENURE
2.7 yrs

Preston Klassen

TITLE
Chief Medical Officer and Executive VP of Research & Development
COMPENSATION
$2M
AGE
49
TENURE
2.1 yrs

Doug Bakan

TITLE
Executive Vice President of Technical Operations
TENURE
0.9 yrs

Suzy Zoumaras

TITLE
Executive VP & Chief Human Resources Officer
AGE
54
TENURE
0.7 yrs

Cheryl Lassen

TITLE
Chief Medical Officer and Executive Vice President of Research & Development
TENURE
1.9 yrs

Chris Cabell

TITLE
Senior VP & Head of Clinical Development
TENURE
1.5 yrs

Robert Lisicki

TITLE
Executive VP & Chief Commercial Officer
TENURE
0.4 yrs
Board of Directors Tenure

Average tenure and age of the Arena Pharmaceuticals board of directors in years:

2.2
Average Tenure
54
Average Age
  • The average tenure for the Arena Pharmaceuticals board of directors is less than 3 years, this suggests a new board.
Board of Directors

Tina Nova Bennett

TITLE
Chair of the Board
COMPENSATION
$194K
AGE
64
TENURE
2.8 yrs

Amit Munshi

TITLE
President
COMPENSATION
$3M
AGE
50
TENURE
2.8 yrs

Randy Woods

TITLE
Independent Director
COMPENSATION
$190K
AGE
66
TENURE
11.3 yrs

Jayson Donald Dallas

TITLE
Independent Director
COMPENSATION
$268K
AGE
50
TENURE
2.2 yrs

Jen Jarrett

TITLE
Director
COMPENSATION
$214K
AGE
47
TENURE
1.8 yrs

Garry Neil

TITLE
Independent Director
COMPENSATION
$264K
AGE
64
TENURE
2.2 yrs

Oliver Fetzer

TITLE
Independent Director
COMPENSATION
$266K
AGE
54
TENURE
2.2 yrs

Kieran Gallahue

TITLE
Independent Director
AGE
55
TENURE
0.8 yrs

Manmeet Soni

TITLE
Independent Director
AGE
40
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
X
Management checks
We assess Arena Pharmaceuticals's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Arena Pharmaceuticals has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

Arena Pharmaceuticals, Inc., a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide. Its investigational clinical programs include ralinepag (APD811), which is in Phase III trial to treat pulmonary arterial hypertension; etrasimod (APD334) for ulcerative colitis, and Crohn’s disease, as well as for atopic dermatitis and other indications; and Olorinab (APD371), which is in Phase II trial for the treatment of gastrointestinal pain. It is also developing APD418, a calcium-independent myofilament derepressor for the treatment of decompensated heart failure. The company has collaboration agreements with United Therapeutics Corporation; Everest Medicines Limited; Axovant Sciences GmbH; Outpost Medicine LLC; CY Biotech Company Limited; Boehringer Ingelheim International GmbH; Eisai Co., Ltd.; and Eisai Inc. Arena Pharmaceuticals, Inc. was founded in 1997 and is based in San Diego, California.

Details
Name: Arena Pharmaceuticals, Inc.
RN3N
Exchange: DB
Founded: 1997
$1,937,863,016
49,462,849
Website: http://www.arenapharm.com
Address: Arena Pharmaceuticals, Inc.
6154 Nancy Ridge Drive,
San Diego,
California, 92121,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS ARNA Common Stock Nasdaq Global Select US USD 28. Jul 2000
DB RN3N Common Stock Deutsche Boerse AG DE EUR 28. Jul 2000
LSE 0S54 Common Stock London Stock Exchange GB USD 28. Jul 2000
Number of employees
Current staff
Staff numbers
194
Arena Pharmaceuticals employees.
Industry
Biotechnology
Pharmaceuticals & Biotech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/19 20:36
End of day share price update: 2019/04/18 00:00
Last estimates confirmation: 2019/04/17
Last earnings filing: 2019/02/28
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.