Orexigen Shares Plummet Following FDA Decision, Competition Gets a Bump

Today Orexigen Therapeutics, Inc.

announced that the FDA has issued a three month extension to the review of its new drug NB32 which for meant as weight loss. The FDA report indicated the reason for the extension was to reach an agreement on the post-marketing obligation of cardiovascular outcomes. Orexigen CEO commented, "We are encouraged by the high level of engagement with the FDA, and are confident that we can reach agreement on the remaining post-marketing obligation." Following the pre-market announcement shares of Orexigen have fallen as much as 16 percent and were trading around the $5.70 mark, at last check. Orexigen competitors, Arena Pharmaceuticals, Inc.

and VIVUS Inc.

have received a ~5 and ~1 percent bump, respectively, in response to the announcement.