Back to top

Image: Bigstock

Orexigen Therapeutics, Inc.

Read MoreHide Full Article

Orexigen’s sole marketed drug, Contrave, targets the obesity market which represents immense commercial potential. Low rates of penetration and awareness, and lack of safe and effective treatment options makes the market highly lucrative. Contrave could bring in multi-million dollar sales for the company. Orexigen’s efforts on commercializing the drug in the U.S. are encouraging. We are also positive on the company’s collaboration agreement with Valeant for the commercialization of the drug. However, Contrave sales are yet to pick up and Orexigen’s dependence on Contrave for growth and lack of pipeline candidates is concerning. Moreover, the company’s shares have underperformed the Zacks classified Medical/Biomedical Genetics industry in 2016.

Published in