Loading...
Loading...
Bank of America raises its rating on Orexigen Therapeutics
OREX to Buy with an increased $7 price objective on long-term upside with near term-drivers.
Bank of America says, "We are upgrading OREX shares to BUY and increasing our DCF-derived PO from $3.50 to $7 due to attractive valuation (EV only $250mn), potential near-term catalysts, and a favorable long-term outlook for the obesity drug Contrave
(expected approval in 2014). If an upcoming FDA advisory meeting (March 28-29)
favors pre-approval cardiovascular outcomes studies in obesity drugs, OREX could be best positioned as it already secured an FDA protocol for a CV-based trial that is about to start. Conversely, if the panel supports post-approval CV studies, investors will assign increased value for OREX's phase 3-ready obesity drug Empatic that has similar efficacy/risks as VVUS' Qnexa."
OREX closed at $3.70 a share on Friday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Benzinga simplifies the market for smarter investing
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
Join Now: Free!
Already a member?Sign in