Orexigen Therapeutics (NASDAQ:OREX) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a research note issued on Thursday.
According to Zacks, “Orexigen’s sole marketed drug, Contrave, targets the obesity market, which represents immense commercial potential. Orexigen has adopted a targeted approach for ramping up Contrave sales after the reacquisition of the U.S. rights last year. The targeted sales efforts are benefitting as Contrave prescriptions and sales have risen sequentially this year. However, accelerated commercialization efforts have increased costs, which hurt profit. We are also positive on the company’s collaboration agreement with several companies for the commercialization of the drug in Europe. Meanwhile, Orexigen’s dependence on Contrave for growth and early stage of pipeline candidates remain potent concerns. However, shares of the company have underperformed the industry in the past one year. Estimates have remained stable ahead of the Q4 earnings results. The company has a mixed record of earnings surprises in recent quarters.”
Shares of Orexigen Therapeutics (OREX) opened at $1.24 on Thursday. The firm has a market cap of $19.13, a P/E ratio of -0.13 and a beta of 2.31. The company has a current ratio of 2.00, a quick ratio of 1.71 and a debt-to-equity ratio of -2.75. Orexigen Therapeutics has a 52-week low of $1.14 and a 52-week high of $5.70.
A hedge fund recently raised its stake in Orexigen Therapeutics stock. Wells Fargo & Company MN grew its holdings in shares of Orexigen Therapeutics, Inc. (NASDAQ:OREX) by 2.5% during the second quarter, according to its most recent 13F filing with the SEC. The institutional investor owned 45,638 shares of the biopharmaceutical company’s stock after buying an additional 1,100 shares during the period. Wells Fargo & Company MN owned approximately 0.30% of Orexigen Therapeutics worth $132,000 as of its most recent filing with the SEC. Hedge funds and other institutional investors own 34.61% of the company’s stock.
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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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