Orexigen Therapeutics, Inc. (NASDAQ:OREX)
Curiously, Orexigen Therapeutics, Inc. (NASDAQ:OREX) traded lower after a United States District Court issued a favorable ruling in a patent litigation case involving three patents for its obesity drug Contrave. Shares of the company fell 3.43% in Friday’s trading session to end the week at $1.97 a share.
Friday’s sell-off strengthened a bearish tone that has seen the stock drop from $5.20 a share in February to current trading levels. While the stock is down by more than 60%, it is still above January’s trading levels.
Investor confidence has taken a hit following the termination of a collaboration agreement with Takeda. The agreement was for the commercialization of Orexigen’s obesity drug Contrave. The termination initially resulted in an increase in sales leading to net revenue increase, per unit, of 37%.
However, the increase was later offset by costs for commercialization of the drug. Orexigen Therapeutics, Inc. (NASDAQ:OREX) has sought to change the situation by taking several steps to drive Contrave sales, in a bid to offset the costs. The company has already initiated speaker programs, as well as patient starter kits and promotional materials.
Orexigen Therapeutics, Inc. (NASDAQ:OREX) faces an uphill task to boost its prospects in the already crowded obesity market. A variety of options exist from the likes of Vivus Inc., Novo Nordis,k and Arena Pharmaceuticals..
Contrave Patent Protection
The company is to provide a business update at the 2017 BIO investor forum on October 17, 2017. The Chief Executive Officer has already pointed out that the company is on a path to profitability by 2019. The executive made the remarks after the District Court extended the exclusivity of the company’s lead obesity drug through 2030.
Orexigen Therapeutics, Inc. (NASDAQ:OREX) has successfully defended its lead product, Contrave from Actavis which was planning to launch a generic version prior to the expiration of U.S Patents.
“Orexigen’s intent was to vigorously defend our intellectual property and we are very pleased with the Court’s decision upholding the validity of all of the patents involved in the case,” said Michael Narachi, President, and CEO of Orexigen. “The Court’s positive decision allows Orexigen to continue to fulfill its mission to provide innovative medicine to treat patients who are overweight or struggling with obesity.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.