The latest weight loss drug trying to enter U.S. market has been rejected by the FDA advisory panel on Thursday.

The new obesity drug called lorcaserin, manufactured by Arena Pharmaceuticals Inc., is the third obesity drug in 2010 that has been failed to get approved by the FDA panel. The panel of experts voted 9 to 5 for the FDA to disapprove lorcaserin.

The reason for the rejection was that the side effects were considered to outweigh the potential benefits. Although human clinical trials discovered no evidence of higher cancer risk, animal studies revealed that the drug was linked to a higher occurrence of tumors.

Also, another concern by the panels was that the studies submitted by Arena did not include patients with diabetes and cardiovascular disease, two groups that will be the major audience of those who would be prescribed the drug.

This same week earlier, the same FDA panel voted 8 to 8 on whether to keep Abbott's weight loss drug Meridia on the US market. European regulators has already banned Meridia earlier this year. FDA panels addressed that it should only be available to people with no history or risk of cardiovascular disease, since recent studies displayed it elevated the danger of heart attack and stroke in this group.

In July, the FDA panel rejected the obesity drug Qnexa, produced by Vivus, because of safety concerns as well.

Arena's shares plunged 45 percent after the documents were released, as the cancer finding makes it unlikely the drug will be approved. The FDA generally listens to the advice of its advisory panel but not all the time.

The decision is now on US Food and Drug Administration and the ruling on lorcaserin will be on October. Arena Pharmaceuticals has issued a statement that the company will work closely with the FDA through the process.