Orexigen Therapeutics (NASDAQ:OREX) was upgraded by Zacks Investment Research from a “sell” rating to a “hold” rating in a report issued on Tuesday.

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 (NASDAQ:OREX) traded up $0.02 during trading hours on Tuesday, reaching $1.20. 358,600 shares of the company were exchanged, compared to its average volume of 228,711. The stock has a market cap of $18.52, a PE ratio of -0.12 and a beta of 2.31. Orexigen Therapeutics has a one year low of $1.14 and a one year high of $5.70. The company has a debt-to-equity ratio of -2.75, a quick ratio of 1.71 and a current ratio of 2.00.

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

Large investors have recently modified their holdings of the stock. Wells Fargo & Company MN grew its holdings in Orexigen Therapeutics by 2.5% in the 2nd quarter. Wells Fargo & Company MN now owns 45,638 shares of the biopharmaceutical company’s stock worth $132,000 after acquiring an additional 1,100 shares during the last quarter. KCG Holdings Inc. grew its holdings in Orexigen Therapeutics by 30.0% in the 1st quarter. KCG Holdings Inc. now owns 43,954 shares of the biopharmaceutical company’s stock worth $151,000 after acquiring an additional 10,139 shares during the last quarter. Creative Planning grew its holdings in Orexigen Therapeutics by 314.2% in the 4th quarter. Creative Planning now owns 146,062 shares of the biopharmaceutical company’s stock worth $251,000 after acquiring an additional 110,800 shares during the last quarter. Old West Investment Management LLC bought a new stake in Orexigen Therapeutics in the 4th quarter worth $358,000. Finally, EcoR1 Capital LLC bought a new stake in Orexigen Therapeutics in the 1st quarter worth $405,000. Institutional investors own 34.60% 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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