Orexigen Therapeutics, Inc. (NASDAQ:OREX) shares fell 8.30% on Thursday after the company released its third quarter earnings figures. Share prices have been trading in a 52-week range of $2.19 to $33.65. The company has a market cap of $25 million at 14.59 million shares outstanding.
In its earnings call Orexigen Therapeutics reported continued progress in its business plan, both in and out of the United States. The company acquired U.S. Contrave rights in March then completed the acquisition from Takeda in August, at which its sales force has been fully operational. The company is aiming to have their consumer activation campaign ready for roll out on time for the 2017 weight loss season.
“More importantly, patients need more information about FDA approved weight loss solutions and we are optimistic that our campaign can help motivate patients to seek more information and take positive actions,” Explained Mike Narachi, CEO of Orexigen therapeutics inc.
He added that three of their recently announced partnerships are already working toward regulatory submissions and approvals with their respective regulatory authorities. The company is also expecting more partnerships in the coming months. Apart from that, Orexigen Therapeutics has two new preclinical programs being processed.
Looking at the numbers, the market has shown 3% growth through September this year so the company is foreseeing 2-9% growth through 2019. Contrave has had 6% of this market share in August and September, and the company expects this share to be maintained throughout the fourth quarter of the year.
Outside the US, Orexigen Therapeutics is set close deals outside the U.S. signing several deals recently in Spain, Canada, and South Africa. Korea, their partner Kwangdong launched in June of this year, generating brand awareness for Contrave. In Spain, the company is preparing for the launch of Mysimba in January 2017 with their partner ROVI. Also, it is expecting regulatory filing in Canada in 1Q 2017 and South Africa in the first half of 2017 both through partnerships with Valeant.
In terms of financial performance, Orexigen Therapeutics generated total revenue of $7 million compared to $10 million a year ago, which actually included $5.2 million from an anniversary milestone earned from Takeda. Minus that, revenue is up by $2.2 million. Net sales by Orexigen in the months of August and September totaled $5.3 million in the US. Also, the company earned approximately $900,000 in royalties on $4.3 million of U.S. net sales of Contrave booked by Takeda prior to the completed acquisition of Contrave by Orexigen.
Operating expenses for the third quarter of 2016 totaled a credit of $37.5 million driven by an $80.2 million one-time non-cash settlement gain. Minus this and other business combination accounting adjustments, operating expenses would have been $40.4 million compared to $20.9 million in third quarter last year.
Orexigen Therapeutics is a a biopharmaceutical company that is focused on the treatment of obesity. Its primary product, Contrave, is approved in the United States by the United States Food and Drug Administration as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass indexof 30 kilograms per square meter or greater or 27 kilograms per square meter or greater.
Contrave is a combination of generic drug components, each of which has received regulatory approval for other indications and has been commercialized in the United States and in a range of member countries of the European Union. It regulates appetite and energy expenditure through central nervous system activity. The product is a fixed dose combination of bupropion hydrochloride extended release and naltrexone.