Orexigen Therapeutics (OREX) Downgraded by Zacks Investment Research to Sell

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.

Orexigen Therapeutics (NASDAQ:OREX) last posted its quarterly earnings results on Monday, November 13th. The biopharmaceutical company reported ($1.35) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($2.13) by $0.78. The firm had revenue of $18.90 million for the quarter, compared to analysts’ expectations of $24.20 million. Orexigen Therapeutics had a negative return on equity of 824.15% and a negative net margin of 192.65%. The company’s revenue for the quarter was up 170.0% compared to the same quarter last year. During the same period in the prior year, the business earned $1.12 EPS. equities research analysts forecast that Orexigen Therapeutics will post -10.08 earnings per share for the current fiscal year.

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.

WARNING: This piece of content was reported by American Banking News and is the property of of American Banking News. If you are reading this piece of content on another domain, it was copied illegally and republished in violation of international trademark & copyright laws. The correct version of this piece of content can be accessed at https://www.americanbankingnews.com/2018/01/04/orexigen-therapeutics-orex-downgraded-by-zacks-investment-research-to-sell.html.

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.

Get a free copy of the Zacks research report on Orexigen Therapeutics (OREX)

For more information about research offerings from Zacks Investment Research, visit Zacks.com

Receive News & Ratings for Orexigen Therapeutics Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Orexigen Therapeutics and related companies with MarketBeat.com's FREE daily email newsletter.

Leave a Reply