Orexigen Therapeutics Inc. (OREX) Lifted to “Hold” at Zacks Investment Research
Orexigen Therapeutics Inc. (NASDAQ:OREX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a note issued to investors on Wednesday.
According to Zacks, “Orexigen’s sole marketed drug, Contrave, targets the obesity market which represents immense commercial potential. Low rates of penetration and awareness and the lack of safe and effective treatment options make the market highly lucrative. Contrave could bring in multi-million dollar sales for the company. We are 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. Contrave is facing a patent challenge as well. Estimates have gone down ahead of the company’s Q3 earnings release. The company has an impressive track record of earnings surprises in the recent quarters.”
Orexigen Therapeutics (NASDAQ:OREX) traded up 0.67% during trading on Wednesday, reaching $3.00. The company’s stock had a trading volume of 44,467 shares. The stock’s market cap is $43.76 million. Orexigen Therapeutics has a 12 month low of $2.88 and a 12 month high of $34.40. The company’s 50-day moving average is $3.53 and its 200-day moving average is $4.14.
Orexigen Therapeutics (NASDAQ:OREX) last issued its earnings results on Thursday, August 4th. The biopharmaceutical company reported ($1.73) earnings per share for the quarter, missing the Zacks’ consensus estimate of ($1.47) by $0.26. The business earned $7.79 million during the quarter, compared to the consensus estimate of $6.88 million. Orexigen Therapeutics had a negative return on equity of 380.26% and a negative net margin of 275.98%. The company’s revenue for the quarter was up 50.0% compared to the same quarter last year. During the same quarter in the previous year, the firm posted ($0.18) earnings per share. Equities analysts expect that Orexigen Therapeutics will post ($6.38) EPS for the current fiscal year.
Several large investors have recently added to or reduced their stakes in the stock. KCG Holdings Inc. increased its stake in shares of Orexigen Therapeutics by 231.5% in the second quarter. KCG Holdings Inc. now owns 264,713 shares of the biopharmaceutical company’s stock valued at $114,000 after buying an additional 184,861 shares during the period. Renaissance Technologies LLC boosted its position in Orexigen Therapeutics by 34.8% in the first quarter. Renaissance Technologies LLC now owns 2,381,100 shares of the biopharmaceutical company’s stock valued at $1,340,000 after buying an additional 614,900 shares in the last quarter. Finally, BVF Inc. IL acquired a new position in Orexigen Therapeutics during the second quarter valued at $2,258,000.
About Orexigen Therapeutics
Orexigen Therapeutics, Inc is a biopharmaceutical company. The Company is focused on the treatment of obesity. The Company’s product, Contrave, is approved in the United States by the United States Food and Drug Administration as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kilograms per square meter or greater (obese) or 27 kilograms per square meter or greater (overweight) in the presence of a weight-related comorbid condition.
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