Edison Investment Research - Orexigen Therapeutics (OREXQ) Initiation: Contrave - leading branded weight loss medicine

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Edison Investment Research

Initiation: Contrave - leading branded weight loss medicine

There is reason to be optimistic about Contrave after its progress vs competitors following launch just over one year ago and the backing of a dedicated salesforce of 900, through partner Takeda, selling into a massive potential market. Contrave was approved in the EU in March and recently signed a commercialization agreement with Kwang Dong in South Korea, communicating its ex-US strategy in its Q3 conference call whereby it plans a territory-by-territory approach. On our analysis, the strong pull back in the stock in recent months, due in part to disappointing interim results of the subsequently withdrawn LIGHT study, provides investors with an attractive entry. We value Orexigen at $1.09bn or $7.49 per share.

14/12/2015 16 EN

Underlying

Orexigen Therapeutics

Orexigen Therapeutics is a biopharmaceutical company focused on the treatment of obesity. The company's sole product, Contrave

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US6861643020 United States

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Orexigen Therapeutics Inc (OREX) - Pharmaceuticals & Healthcare - Deals and Alliances Profile

Summary Orexigen Therapeutics Inc (Orexigen) is a biopharmaceutical company which develops and commercializes indications for the treatment of obesity. Its lead product, Contrave (naltrexone HCl / bupropion HCl prolonged release) is FDA approved as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults. Contrave is also approved in Europe under the brand name Mysimba. The company is also undertaking a range of commercialization activities, to bring Contrave / Mysimba to patients worldwide. The product is also sold in different countries wo...

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April 25, 2018 April 25, 2018 45 EN

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Contrave comeback

Orexigen’s decision to shift its US marketing focus from healthcare providers to consumers appears to be paying dividends as there has been a significant rebound in Contrave prescriptions since the launch of the patient-centric campaign. Outside of the US, progress continues as the product has launched in 13 countries, with another 10 expected by the end of the year, including Italy, where Orexigen just signed a local commercial and distribution partner.

April 19, 2017 April 19, 2017 6 EN

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Update: Taking control of Contrave

On 15 March Orexigen announced the acquisition of US distribution rights to its obesity treatment Contrave from Takeda. The company simultaneously announced a new collaboration with Valeant for the commercialization of Mysimba (Contrave ex-US) in 18 Central and Eastern European countries. We value Orexigen at $213m, significantly reduced from $1.09bn, mainly on reduced expectations for Contrave in the US. However, our fair value of $1.47/share is substantially above the current $0.51 share price.

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Initiation: Contrave - leading branded weight loss medicine

Orexigen Therapeutics Inc (OREX) - Pharmaceuticals & Healthcare - Deals and Alliances Profile

Contrave comeback

Update: Taking control of Contrave

AGBA - A transformational deal

Biodexa Pharmaceuticals - In a period of transition

Norcros - Sale of Johnson Tiles UK agreed

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