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10 Hottest Small-Cap Stocks of 2012

Biotechs make up most of this high-flying crowd

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#5: Arena Pharmaceuticals

YTD Performance: +350%

As previously mentioned Orexigen (NASDAQ:OREX), obesity drug-makers have had a good go of it this year, and Arena Pharmaceuticals (NASDAQ:ARNA) is one of the highest fliers.

Earlier in 2012, Arena’s lorcaserin medication became the first new prescription weight-loss drug in more than a decade to win FDA final approval, tapping into a highly lucrative market.

Of course, Arena does other things, too. This clinical-stage biopharmaceutical company also is dabbling in cardiovascular, nervous system, inflammatory and metabolic disorders.

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