Even a weight loss drug could stop Orexigen Therapeutics, Inc. fell to 20% in 2014
Manufacturers have thicker waist concern that health issues arise with diabetes and cardiovascular disease resulting in the coming decades health. These concerns have led to a wave of research and development of drugs that could help to reduce the risk of type 2 diabetes to help by the patient to lose weight, including Orexigen Therapeutics (NASDAQ: OREX) Contrave recently approved .
But despite winning approval from the FDA in September, shares of Orexigen have failed to gain traction this year. In contrast, decreased by almost 20%. Take a look and see what stocks fell, and whether it would not be a value in the shares of the company.
Source: Centers for Disease Control
First, a little history
About 90% of diabetics are overweight and improve the economy of the emerging economies and aging baby boomers predict in the industry observers in the United States that the global diabetes population growth to 366 million 552 million people by the year 2030th
Here in the United States, approximately 79 million Americans with symptoms that if left untreated can lead to diabetes are left undiagnosed. It's a scary number when you consider how much is currently crushed by the 21 million diabetics in the United States diagnosed.
If most of these patients eventually progressed prediabetic - with about 70% do so - the cost of diabetes is undeniably more runs. The ADA estimates that the direct medical and economic costs (such as lost workdays) total diabetes costs $ 245 billion in 2012, to an astonishing 41% compared to 2007th
Big problem, uncertain solutions
To help change the lifestyle of patients lose weight and reduce your chances of being diagnosed with diabetes is difficult. Healthy food is often more expensive than high-fat or sugary foods, and access to gyms and sports equipment can be expensive and time consuming for those struggling to meet ends meet.
Source: Department of Veterans Affairs
So drugmakers Vivus, Arena Pharmaceuticals, Orexigen and have spent hundreds of millions of dollars in drug research, which may be prescribed along with diet and exercise for weight loss.
The FDA approved the drug in each of these three companies, and these solutions are always fascinating, but also with great obstacles.
A Although I. Tests in helping demonstrated approximately 10% of capacity at lower weight, the use of these drugs is a trickle to a flood
Sales of Qsymia Vivus, which was approved by the FDA in 2012, amounted to only $ 11 million in the second quarter, and the arena had no luck with the medicine is out Belviq Arena company 10 million in the last quarter. It is a fact rather disappointing performance expectations before approval had expected revenue of billions of dollars per year.
Deaf ears
The use of weight loss drugs is probably boring to the doctors concerned for their safety. All three companies have seen the FDA rejects their applications for the first time by the fear that increase their medication the risk of cardiovascular disease.
These concerns are addressed by current studies on patients to monitor medication, but the stigma is difficult to overcome.
Meanwhile study on cardiovascular results Orexigen, launched in 2012 to life, has produced the preliminary results in the last year who are willing FDA approval was supported. The study also confirmed that patients receiving Contrave were of at least 5% of their body weight to lose two to three times more likely than patients who took a placebo.
Although these results are encouraging, the inability of Vivus and Arena drugs means gather traction that investors probably right, a wait and see approach companies for Contrave. Personally, I am more than happy to prove to the Bank at least one of these companies, there is a market for these medications to sit for weight loss.
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