Recently, Terry Chrisomalis has started contributing articles in the BioTech space that really peaked my interest. So, I decided to go digging around in BioTech to see what all the buzz was about. That brought me to Orexigen (OREX). Orexigen Therapeutics is an American pharmaceutical company that recently discovered hidden heart benefits in the oddest of places; a diet pill. Today, we’ll talk about the diet pill and its alleged heart benefits, why the FDA is frowning down upon the news, and the incredible rally we’ve seen in Orexigen (OREX) stock prices!
Orexigen (OREX) Diet Pill Surprises With Heart Benefits
Orexigen (OREX) recently started a study to find out if their diet pill Contrave had any cardiac risks users should be aware of. The results of the first study were astonishing. The company released a statement stating that there was recently a study involving just under 9,000 participants. The results of the study in the words of the company “were unexpected and appear to be unrelated to weight change”. Today, it is believed that Contrave presents no cardiac risks to users; instead it may reduce the risk of heart attack and other heart related ailments.
Why The FDA Is Not Happy With Orexigen (OREX) Right Now
Of course, advancements in medicine are always a good thing. However, the FDA doesn’t seem to be too thrilled about how early Orexigen (OREX) has released the news. According to the Food and Drug Administration, there are more tests that need to be done before a statement like this can be confidently made. Following the announcement made by Orexigen (OREX), the FDA had the following to say…
“Not surprisingly, the lead researcher for the study is upset. Orexigen had agreed to a data access plan with the trial’s first data monitoring committee that strictly limited use of the data for a regulatory filing to FDA. Public disclosure of these incomplete data or use of data for business purposes was strictly forbidden by the agreement.”
All in all, the big problem that the FDA has with the way Orexigen (OREX) is going about this is that the announcement is clearly aimed for business purposes. However, the company hasn’t proven without reasonable doubt that the drug is capable of doing what they say it can.
How Orexigen (OREX) Stock Has Reacted To The News
Regardless of how the FDA feels about Orexigen’s early announcement of their findings, investors seem to love what they hear. Shortly following the release of the information, the company’s stock started climbing. After closing the day on Tuesday at $7.64 per share, the company’s stock rally continued the upward momentum Wednesday. Currently, (Wednesday 2:49) Orexigen (OREX) shares are trading at $8.63 per share and the uptrend looks like it will last throughout the rest of the day.
What Are Your Thoughts
Was the Orexigen (OREX) news premature? Do you think the upward momentum in the company’s stocks will continue?