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Orexigen Posts Wider-than-Expected Loss in Q1, Sales Up Y/Y
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Orexigen Therapeutics, Inc.’s loss of $4.67 per share in the first quarter of 2017 was significantly wider than the Zacks Consensus Estimate of a loss of $2.60 and the year-ago loss of $1.54.
Quarterly revenues of approximately $19.1 million were significantly higher than $5 million in the year-ago quarter. The top-line improvement was primarily attributed to growth in net revenue per unit of Contrave sold in the U.S. and Contrave shipments to partners to support launches outside the U.S.
Orexigen’s shares have significantly outperformed the Zacks classified Medical-Biomed/Genetics industry so far this year. Shares of the company gained 95.4% while the industry registered an increase of only 2%.
Quarterly Detail
In the first quarter, Orexigen reported U.S. net sales of Contrave of $14.8 million. Product sales to global partners amounted to $4.3 million
IMS Health's prescription data recorded 195,920 total prescriptions for Contrave filled in this quarter compared with 192,005 total prescriptions filled in the year-ago period.
While R&D expenses decreased 30.7% from the year-ago period to $8.2 million,general and administrative expenses were $55.2 million, up 233.8%from the year-ago period. The increase was primarily due to costs associated with commercializing Contrave in the U.S. as Orexigen terminated its collaboration agreement with Takeda for Contrave in Mar 2016 and started selling the drug itself.
In Mar 2017, Orexigen entered into a commercialization and distributorship agreement with Italian pharmaceutical company, Bruno Farmaceutici, for Mysimba (tradename for Contrave in Europe). Notably, this is the company’s fourth partnership in Europe.
Also, in this quarter, Mysimba was launched in Spain by Orexigen’s partner, Laboratorios Farmaceuticos Rovi, S.A.
Subsequent to the quarter, in Apr 2017, the company successfully submitted a new drug submission seeking marketing approval for Contrave in Canada. Also, in May, a commercialization and distributorship agreement was signed with Norwegian medtech and pharmaceutical products company, Navamedic ASA, for selling Mysimba in Denmark, Finland, Iceland, Norway and Sweden. Notably, this is the company’s fifth partnership in Europe.
2017 Business Priorities
The company is focused on driving Contrave sales in the U.S. by utilizing innovative patient-centric marketing tactics and growing global availability by building established partnerships with regional partners outside the U.S.
The company expects to file investigational new drug (IND) application for its two pipeline candidates in pain management and medication-assisted therapy for drug addiction
Orexigen Therapeutics, Inc. Price, Consensus and EPS Surprise
Orexigen currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector are Applied Genetic Technologies Corporation , Catabasis Pharmaceuticals, Inc. and Enzo Biochem, Inc. (ENZ - Free Report) . All the three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Genetic’s earnings per share estimates increased 25.9%to 34 cents for 2017over the last 60 days. The company posted positive surprises in all the four trailing quarters with an average beat of 222.92%.
Catabasis’loss per share estimates narrowed 13% to $1.74 for 2017 over the last 60 days. The company posted positive earnings surprises in all the four trailing quarters, with an average beat of 7.6%.
Enzo’s loss per share estimates narrowed from 25% to 12 cents for 2017 over the last 60 days. The company posted positive earnings surprises in the four trailing quarters, with an average beat of 39.17%.
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Orexigen Posts Wider-than-Expected Loss in Q1, Sales Up Y/Y
Orexigen Therapeutics, Inc.’s loss of $4.67 per share in the first quarter of 2017 was significantly wider than the Zacks Consensus Estimate of a loss of $2.60 and the year-ago loss of $1.54.
Quarterly revenues of approximately $19.1 million were significantly higher than $5 million in the year-ago quarter. The top-line improvement was primarily attributed to growth in net revenue per unit of Contrave sold in the U.S. and Contrave shipments to partners to support launches outside the U.S.
Orexigen’s shares have significantly outperformed the Zacks classified Medical-Biomed/Genetics industry so far this year. Shares of the company gained 95.4% while the industry registered an increase of only 2%.
Quarterly Detail
In the first quarter, Orexigen reported U.S. net sales of Contrave of $14.8 million. Product sales to global partners amounted to $4.3 million
IMS Health's prescription data recorded 195,920 total prescriptions for Contrave filled in this quarter compared with 192,005 total prescriptions filled in the year-ago period.
While R&D expenses decreased 30.7% from the year-ago period to $8.2 million,general and administrative expenses were $55.2 million, up 233.8%from the year-ago period. The increase was primarily due to costs associated with commercializing Contrave in the U.S. as Orexigen terminated its collaboration agreement with Takeda for Contrave in Mar 2016 and started selling the drug itself.
In Mar 2017, Orexigen entered into a commercialization and distributorship agreement with Italian pharmaceutical company, Bruno Farmaceutici, for Mysimba (tradename for Contrave in Europe). Notably, this is the company’s fourth partnership in Europe.
Also, in this quarter, Mysimba was launched in Spain by Orexigen’s partner, Laboratorios Farmaceuticos Rovi, S.A.
Subsequent to the quarter, in Apr 2017, the company successfully submitted a new drug submission seeking marketing approval for Contrave in Canada. Also, in May, a commercialization and distributorship agreement was signed with Norwegian medtech and pharmaceutical products company, Navamedic ASA, for selling Mysimba in Denmark, Finland, Iceland, Norway and Sweden. Notably, this is the company’s fifth partnership in Europe.
2017 Business Priorities
The company is focused on driving Contrave sales in the U.S. by utilizing innovative patient-centric marketing tactics and growing global availability by building established partnerships with regional partners outside the U.S.
The company expects to file investigational new drug (IND) application for its two pipeline candidates in pain management and medication-assisted therapy for drug addiction
Orexigen Therapeutics, Inc. Price, Consensus and EPS Surprise
Orexigen Therapeutics, Inc. Price, Consensus and EPS Surprise | Orexigen Therapeutics, Inc. Quote
Zacks Rank & Key Picks
Orexigen currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the healthcare sector are Applied Genetic Technologies Corporation , Catabasis Pharmaceuticals, Inc. and Enzo Biochem, Inc. (ENZ - Free Report) . All the three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Applied Genetic’s earnings per share estimates increased 25.9%to 34 cents for 2017over the last 60 days. The company posted positive surprises in all the four trailing quarters with an average beat of 222.92%.
Catabasis’loss per share estimates narrowed 13% to $1.74 for 2017 over the last 60 days. The company posted positive earnings surprises in all the four trailing quarters, with an average beat of 7.6%.
Enzo’s loss per share estimates narrowed from 25% to 12 cents for 2017 over the last 60 days. The company posted positive earnings surprises in the four trailing quarters, with an average beat of 39.17%.
Looking for Ideas with Even Greater Upside?
Today's investment ideas are short-term, directly based on our proven 1 to 3 month indicator. In addition, I invite you to consider our long-term opportunities. These rare trades look to start fast with strong Zacks Ranks, but carry through with double and triple-digit profit potential. Starting now, you can look inside our home run, value, and stocks under $10 portfolios, plus more. Click here for a peek at this private information >>