Obesity Hype Meets Harsh Reality

Arena Pharmaceuticals' and VIVUS' obesity drugs have struggled out of the gate, which could be good news for Orexigen.

May 27, 2014 at 6:30PM

This month, Arena Pharmaceuticals (NASDAQ:ARNA) and VIVUS (NASDAQ:VVUS) reported first-quarter earnings, and the results continued to be unimpressive, with both companies' obesity drugs having trouble gaining any traction. Neither drug has broken the $10 million-per-quarter mark, putting them a long way away from their blockbuster potential.

In the following video, senior biotech specialist Brian Orelli and health-care analyst David Williamson discuss why the drugs have struggled despite the large market, noting that there are issues with both patients and doctors that the companies have to overcome.

The duo also discuss Orexigen's (NASDAQ:OREX) Contrave, a potential third player that should hear from the FDA by June 10. Orexigen was vying for approval around the same time as Arena Pharmaceuticals and VIVUS but was delayed because the FDA wanted a cardiovascular safety study performed. Given the sales so far, the delay doesn't seem to have been particularly detrimental to Orexigen.

This market, on the other hand, is worth $2.2 trillion.
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Brian Orelli has no position in any stocks mentioned. David Williamson owns shares of Apple and Google (C shares). The Motley Fool recommends and owns shares of Apple, Google (A and C shares), and Netflix. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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