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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Jason Moser has no position in any stocks mentioned. Michael Douglass has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.