<<there will be no IPO until they have at least some interesting phase 1 data.>>
I disagree...based on this call...I would expect an "IPO" by late 3Q or early 4Q. Since Arena NeuroScience is a spinout of an already existing public co...it can (and will) occur much faster than typical private-to-public IPO's.
I do agree that putting a $1B-$2B valuation on it is ridiculous (without any phase 1 data)...but I can see them easily raising about $50M-$75M (for a 40%-50% stake) necessary to start advancing some the development programs Arena doesn't necessarily want to take the full risk in advancing itself. As a new company...this amount of new capital wouldn't be that unusual even in advanced of phase 1 data.
VG