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Orexigen Inks Commercialization Deal for Contrave, Stock Up
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Orexigen Therapeutics, Inc.’s shares gained 3.8% on Mar 27, 2017, after the company announced that it has entered into a commercialization and distributorship agreement with Italian pharmaceutical company, Bruno Farmaceutici, for its obesity drug, Contrave (EU trade name: Mysimba). Notably, this is the company’s fourth partnership in Europe.
Under the terms of the deal, Bruno Farmaceutici will be responsible for gaining regulatory approval in Canada and for all commercialization activities and expenses. On the other hand, Orexigen would supply Contrave tablets for an agreed transfer price, based on certain regulatory and sales milestone payments.
Orexigen’s shares gained 137.4% so far this year, significantly outperforming an increase of 5.7% by the Zacks classified Medical-Biomed/Genetics industry.
Please note that Contrave was approved in the U.S. in 2014 as a supplement to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kg/m2 or greater (obese) or 27 kg/m2 or greater (overweight) in the presence of at least one weight-related comorbid condition. It also gained approval in Europe in late Mar 2015.
We remind investors that in Mar 2016, Orexigen inked a deal with Valeant Pharmaceuticals to commercialize Mysimba across 19 countries in Central and Eastern Europe.
As part of its ex-U.S. commercialization strategy, the company presently has partnerships in a total of 39 countries worldwide. The company’s strong alliance management capabilities should support it and its partners in bringing Contrave to patients who struggle to lose weight.
According to the Organisation of Economic Co-operation and Development (OECD), over 40% of adults are overweight or struggling with obesity in Italy. Further, the World Health Organisation (WHO) predicted that the obesity rates will continue to rise in country in the near future. Hence, approval of this drug will provide the company access to a huge number of patients suffering from the disease in Italy.
However, the obesity market is already crowded with drugs like VIVUS, Inc.’s Qsymia and Novo Nordisk’s (NVO - Free Report) Saxenda, among others. As a result, the company is likely to face stiff competition.
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Orexigen Inks Commercialization Deal for Contrave, Stock Up
Orexigen Therapeutics, Inc.’s shares gained 3.8% on Mar 27, 2017, after the company announced that it has entered into a commercialization and distributorship agreement with Italian pharmaceutical company, Bruno Farmaceutici, for its obesity drug, Contrave (EU trade name: Mysimba). Notably, this is the company’s fourth partnership in Europe.
Under the terms of the deal, Bruno Farmaceutici will be responsible for gaining regulatory approval in Canada and for all commercialization activities and expenses. On the other hand, Orexigen would supply Contrave tablets for an agreed transfer price, based on certain regulatory and sales milestone payments.
Orexigen’s shares gained 137.4% so far this year, significantly outperforming an increase of 5.7% by the Zacks classified Medical-Biomed/Genetics industry.
Please note that Contrave was approved in the U.S. in 2014 as a supplement to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kg/m2 or greater (obese) or 27 kg/m2 or greater (overweight) in the presence of at least one weight-related comorbid condition. It also gained approval in Europe in late Mar 2015.
We remind investors that in Mar 2016, Orexigen inked a deal with Valeant Pharmaceuticals to commercialize Mysimba across 19 countries in Central and Eastern Europe.
As part of its ex-U.S. commercialization strategy, the company presently has partnerships in a total of 39 countries worldwide. The company’s strong alliance management capabilities should support it and its partners in bringing Contrave to patients who struggle to lose weight.
According to the Organisation of Economic Co-operation and Development (OECD), over 40% of adults are overweight or struggling with obesity in Italy. Further, the World Health Organisation (WHO) predicted that the obesity rates will continue to rise in country in the near future. Hence, approval of this drug will provide the company access to a huge number of patients suffering from the disease in Italy.
However, the obesity market is already crowded with drugs like VIVUS, Inc.’s Qsymia and Novo Nordisk’s (NVO - Free Report) Saxenda, among others. As a result, the company is likely to face stiff competition.
Orexigen Therapeutics, Inc. Price
Orexigen Therapeutics, Inc. Price | Orexigen Therapeutics, Inc. Quote
Zacks Rank
Orexigen currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
More Stock News: This Is Bigger than the iPhone!
It could become the mother of all technological revolutions. Apple sold a mere 1 billion iPhones in 10 years but a new breakthrough is expected to generate more than 27 billion devices in just 3 years, creating a $1.7 trillion market.
Zacks has just released a Special Report that spotlights this fast-emerging phenomenon and 6 tickers for taking advantage of it. If you don't buy now, you may kick yourself in 2020. Click here for the 6 trades >>