SAN DIEGO, May 3 /PRNewswire-FirstCall/ -- Arena Pharmaceuticals, Inc. (Nasdaq: ARNA - News) announced today the sale to an affiliate of BioMed Realty Trust, Inc. of three properties owned and occupied by Arena and the assignment to BioMed of an option to purchase a fourth property currently leased and primarily occupied by Arena. Total consideration received by Arena for the properties and the purchase option was $50.1 million. Concurrently with the closing of the transaction, Arena leased back the three properties sold to BioMed under leases with 20-year terms and two consecutive options to extend such terms for five years each. Arena has the option to purchase from BioMed all of the properties included in the transaction on the 10th, 15th or 20th anniversary of the execution date of the leases.
“Owning many of the properties that Arena occupies has been an effective strategy for better controlling the development of our R&D infrastructure while building some very meaningful equity,” said Jack Lief, Arena’s President and Chief Executive Officer. “Improving on our strong financial position in this non-dilutive manner permits continued flexibility in the negotiation and timing of a partnership for lorcaserin and our other programs, and the ability to aggressively advance our clinical and research programs in a manner consistent with our focus on building both our pipeline and long-term value for stockholders.”
In addition to the amount paid to Arena at closing, under the terms of the agreement, BioMed will pay Arena up to an additional $16 million if Arena completes, in its discretion, certain improvements to the properties sold to BioMed. Upon the exercise of the option assigned to BioMed in this transaction to purchase a fourth property, BioMed will pay the current owner of the property approximately $7.9 million and Arena will lease the building from BioMed for a term that is concurrent with the leases for the other purchased properties.
About Arena Pharmaceuticals
Arena is a clinical-stage biopharmaceutical company focused on discovering, developing and commercializing oral drugs in four major therapeutic areas: cardiovascular, central nervous system, inflammatory, and metabolic diseases. Arena’s most advanced product candidate, lorcaserin, is being investigated in a Phase 3 clinical trial program for the treatment of obesity. Arena’s broad pipeline of novel compounds targeting G protein-coupled receptors, an important class of validated drug targets, includes compounds being evaluated independently and with its partners, Merck & Co., Inc. and Ortho-McNeil Pharmaceutical, Inc.
Arena Pharmaceuticals® and Arena® are registered service marks of the company. “APD” is an abbreviation for Arena Pharmaceuticals Development.
Forward-Looking Statements
Certain statements in this press release are forward-looking statements that involve a number of risks and uncertainties. Such forward-looking statements include statements about BioMed’s potential payments and about Arena’s financial position, ability to partner, focus and strategy, preclinical and internal and partnered clinical programs, and ability to develop compounds and commercialize drugs. For such statements, Arena claims the protection of the Private Securities Litigation Reform Act of 1995. Actual events or results may differ materially from Arena’s expectations. Factors that could cause actual results to differ materially from the forward-looking statements include, but are not limited to, Arena’s planned clinical trials may not proceed at the time Arena expects or at all, the results of preclinical studies or clinical trials may not be predictive of future results, Arena’s ability to partner lorcaserin, APD125, APD791 or other of its compounds or programs, the timing, success and cost of Arena’s research, out-licensing endeavors and clinical trials, Arena’s ability to obtain additional financing, Arena’s ability to obtain and defend its patents, and the timing and receipt of payments and fees, if any, from Arena’s collaborators. Additional factors that could cause actual results to differ materially from those stated or implied by Arena’s forward-looking statements are disclosed in Arena’s filings with the Securities and Exchange Commission. These forward-looking statements represent Arena’s judgment as of the time of this release. Arena disclaims any intent or obligation to update these forward-looking statements, other than as may be required under applicable law.
Contacts: Jack Lief E. Blair Schoeb President and CEO WeissComm Partners Media Relations David Walsey 760.365.1857 Director, Corporate Communications Arena Pharmaceuticals, Inc. 858.453.7200, ext. 1682
www.arenapharm.com
Source: Arena Pharmaceuticals, Inc.
