Boston, MA 06/11/2014 (wallstreetpr) – Orexigen Therapeutics, Inc. (NASDAQ:OREX) intends to bring its obesity drug called Contrave to the market after the U.S. Food and Drug Administration issues its verdict today. The approval of the drug will be a milestone for the company given its many past challenges to bring the drug to the market.
The company failed to win FDA approval for the drug in 2011 as it was required to supply the regulator with multiyear study on the cardiovascular safety of the treatment. While Contrave (also known as NB32) failed to make it through FDA approval, rivals Osymia and Belviq by VIVUS, Inc. (NASDAQ:VVUS) and Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) respectively secured FDA clearance in 2012.
Paving the way
Although it may seem like Orexigen Therapeutics, Inc. (NASDAQ:OREX) lost a great deal when its rivals moved ahead of it in launching weight-drugs, the company may have a smoother ride when it finally introduces its product. First and foremost, the company has learned several things from the challenges that rivals have continued to face with their weight management drugs. Secondly, the company boasts solid study backing for its obesity drug, a position that might help it wage a successful market share war against Vivus, Arena and other rivals.
Big Market Opportunity
According to the Centers for Disease Control and Prevention, more than a third of the U.S. adult population is obese. That means that despite its third-place position, Orexigen Therapeutics, Inc. (NASDAQ:OREX) still has huge market to appeal to with its obesity drug.
The fact that Vivus and Arena have not had any meaningful gain with their obesity drugs means that Orexigen could exploit their weaknesses to its advantage. One particular reason that has hurt sales of Bleviq and Osymia is lack of a Big Pharma partnership to support sales. However, Orexigen Therapeutics, Inc. (NASDAQ:OREX) has Takead, which is has a bigger profile in the drug marketplace than Arena’s partner Eisai.
Therefore, it will not be a big challenge for Orexigen Therapeutics, Inc. (NASDAQ:OREX) to meet sales targets with Takead as its marketing partner.
