What's Driving Orexigen Therapeutics Higher?
The rally in shares of Orexigen Therapeutics, Inc. (NASDAQ: OREX) that started on Monday, doesn’t seem to be coming to an end anytime soon. After taking a breather on Tuesday, the stock was again up by 15.87 percent on Wednesday. The stock is up more than 50 percent since last Friday’s close.
Zacks Responsible For Wednesday's Move?
The reiteration of Neutral by Zacks may have helped Orexigen’s stocks to move higher.
In their note to investors, analysts at Zacks wrote, “[…] the approval of obesity drug, Contrave is a major positive for the company given the huge commercial opportunity in this market. With Contrave already launched in the U.S., we expect investor focus to stay on the performance of the drug.”
On Monday morning, analysts at Wells Fargo had also reiterated their Outperform rating on the stock.
Outstanding Q3 Results
Orexigen Therapeutics declared its third-quarter earnings results on Monday, which was better than what analysts were expecting. Revenue for the quarter came at $30.9 million, above analysts’ expectations of around $9 million and significantly above the $0.9 million revenue that the company posted for the same quarter last year.
The company outperformed market expectations on earning per share front as well. Whereas the Street was estimating Orexigen to post an EPS loss of around $0.13, the company reported an EPS of $0.09, again significantly above the EPS loss of $0.19 it posted for the same period, last year.
Good News From Europe
Orexigen also issued a press release on Monday in which it updated investors on the EU application for its weight control management drug, Contrave. Application for similar drugs from Arena Pharmaceuticals, Inc. and VIVUS, Inc. was disapproved by the EU. However, Orexigen recently had a favorable meeting with EU regulators following submission of its responses to the List of Outstanding Issues to the Committee for Medicinal Products for Human Use. According to the press release, the company also "believes the remaining issues are addressable."
Shares recently traded at $5.92, up another 1.3 percent on Thursday.
Latest Ratings for OREX
|Mar 2016||JMP Securities||Downgrades||Market Outperform||Market Perform|
|Feb 2016||JP Morgan||Downgrades||Overweight||Neutral|
|Feb 2016||RBC Capital||Downgrades||Outperform||Sector Perform|
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