December 3, 2010
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biopharmaceutical company Orexigen Therapeutics (Nasdaq: OREX ) fell 10% today after a Food and Drug Administration announcement.
So what: The FDA said weight-loss pill Contrave indeed helped patients lose weight but didn't meet all the requirements. The pill may cause heart health risks, and the FDA will have a panel vote on the drug Tuesday.
Now what: Two other weight-loss drugs have been rejected by the FDA, and Contrave is now coming into question. Investors may want to wait until after Tuesday's decision to reassess this stock. We could be in for another pummeling if the panel doesn't vote favorably.
Interested in more info on Orexigen Therapeutics? Add it to your watchlist.