Arena (Nasdaq:ARNA) Crushed on Uncertainty Surrounding Lorcaserin

Arena (Nasdaq:ARNA) is getting hammered today at the volatile stock continues its ways, based on the rejection of its diet pill lorcaserin rejected by the FDA.

While the company will submit a new application near the end of 2011, probability of approval appears increasingly dim, not only because of the obvious concerns over tumors discovered in mice during studies, but also with the comment from an FDA drug expert advisers who said its questionable as to the effectiveness of the drug itself in relationship to weight loss.

Together this doesn't present a good narrative for the company or shareholders going forward, although traders will enjoy the volatility of the stock as it bounces around on every bit of news that comes out about it.

Taking into account safety issues and dubious effectiveness, Arena is in for a long struggle to get approval for Lorcaserin, if they ever do.

Arena Pharmaceuticals was trading at $1.82, down $0.22, or 10.78 percent, as of 1:51 PM EDT.