Down 18%: Is Orexigen a Bad News Buy?

Orexigen Therapeutics (NASDAQ: OREX) reported this morning that the FDA is delaying a decision on its anti-obesity drug Contrave for three months -- until September 11th. The stock promptly sold off (down 18% as of this writing) as investors reacted to the delay. But was the news really that bad?

After all, the FDA's delay was reportedly tied to a need to hash out post-marketing requirements, which would seem to imply approval for the drug is in the works. Was the sell-off maybe a little overdone?

In the video below, Motley Fool analysts Michael Douglass and Jason Moser discuss Orexigen and its competitors Arena (NASDAQ: ARNA) and VIVUS (NASDAQ: VVUS) and why, even with a potentially over-done sell-off, there are still better opportunities in biotech.

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  • Report this Comment On June 11, 2014, at 11:46 AM, marp11 wrote:

    But was the news really that bad?

    yes ,,it is

    fda knows 2 generics with awful side effects

    fda knows BELVIQ IS THE ONE

  • Report this Comment On June 11, 2014, at 12:00 PM, feelinIrie wrote:

    Ohhh yes it was that bad!

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Michael Douglass

As the Motley Fool's Health Care Editor/Analyst, I focus on all things health care -- although my greatest interest is in the megatrends reshaping the American health care system, including the Affordable Care Act, Accountable Care Organizations, a shifting regulatory landscape, and the new drug discoveries fundamentally changing disease management and treatment.

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8/28/2015 3:59 PM
ARNA $2.71 Down +0.00 +0.00%
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VVUS $1.15 Down +0.00 +0.00%
VIVUS, Inc. CAPS Rating: **