UPDATE 1-Arena posts wider Q1 loss, backs '08 rev view

(Recasts; adds conference call details)

May 7 (Reuters) - Arena Pharmaceuticals Inc (ARNA.O: Quote, Profile, Research) posted a wider-than-expected quarterly loss, hurt by higher expenses, but backed its 2008 revenue view. Arena reported a first-quarter net loss allocable to common shareholders of $55.0 million, or 75 cents a share, compared to a net loss of $32.4 million, or 53 cents a share, in the year-ago quarter. Total revenue fell 47 percent to $2.6 million.

Analysts on average expected a loss of 67 cents a share, before special items, on revenue of $3.1 million, according to Reuters Estimates.

In a conference call with analysts, the biopharmaceutical company said it still expects 2008 revenue of $8 million to $12 million. Analysts expect $15.7 million.

Arena, which expects to end 2008 with about $160 million in cash and cash equivalents, said it has enough cash to fund the late-stage trials of its obesity drug Lorcaserin and file for approval in 2009.

The 32 percent rise in the research and development expense was mainly due to higher clinical development costs related to the late-stage study of the obesity drug, the company said.

Lorcaserin, which underwent safety reviews to determine if it caused damage to heart valves, was cleared by an independent review board on March 17.

Shares of the San Diego-based company closed at $5.56 Wednesday on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Himani Sarkar)