Better Buy Now: Arena vs. Vivus


In today's video, I look at new developments in biotech pharmaceuticals. Shares of Arena Pharmaceuticals (NAS: ARNA) soared this week after the company received FDA approval for its weight loss drug, which will be marketed under the name Belviq. In the video, I'll explain why I think investors should let the approval buzz die down before jumping into this name. I also lay out the case for rival drug maker Vivus (NAS: VVUS) , which I've given an outperform rating on my profile in Motley Fool CAPS.

Similar to Arena, Vivus also developed an anti-obesity drug known as Qnexa. While shares of Vivus traded higher on Arena's good news, I think the stock will continue to go up if, and when, the FDA clears its Qnexa drug by July 17. The likelihood of Qnexa getting the green light looks good, considering an FDA approval back in February.

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Fool contributor Tamara Rutter owns shares of both Arena Pharmaceuticals and Vivus. Follow her onTwitterusing the handle: @TamaraRutterfor weekly stock picks and other Foolish insights. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

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