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Orexigen Therapeutics, Inc. (NASDAQ:OREX) is scheduled to report its Q2 2012 results on August 7, 2012, before the market opens. The Street expects EPS of ($0.17) loss.

In this article, I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from OREX and the news from its closest competitors.

Orexigen Therapeutics, Inc. Revenue and Net Income History

Recent EPS Actuals vs. Estimates

In the last quarter, it reported ($0.16) loss per share, failing to meet analyst estimates of ($0.12) loss.

Orexigen Therapeutics, Inc. EPS Historical Results vs Estimates

The consensus EPS estimate is ($0.17) loss based on 6 analysts' estimates, just below ($0.16) loss from a year ago. Revenue estimates are $890.00K, up from $857.00K a year ago. The median target price by analysts for the stock is $12.00.

Average recommendation: Overweight

Source: Marketwatch

Latest News

  • On July 11, 2012, Dow Jones reported that Orexigen Therapeutics, Inc. expects to complete enrollment in an interim study of cardiovascular risks associated with its weight loss treatment Contrave in the first quarter next year, potentially reducing its initial estimates by half.
  • On March 8, 2012, Orexigen® Therapeutics, a biopharmaceutical company focused on the treatment of obesity, announced financial results for the three months and year ended December 31, 2011. For the three months ended December 31, 2011, Orexigen reported a net loss of $4.3 million, or $0.09 per share, as compared to a net loss of $11.3 million, or $0.24 per share, for the fourth quarter of 2010. As of December 31, 2011, Orexigen had $101.7 million in cash and cash equivalents and an additional $45.8 million in marketable securities, for a total of $147.5 million.

Competitors

Abbott Laboratories (NYSE:ABT), Arena Pharmaceuticals (NASDAQ:ARNA), GlaxoSmithKline (NYSE:GSK), and VIVUS (NASDAQ:VVUS) are considered major competitors for Orexigen Therapeutics. The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one-year period.

OREX Chart

OREX data by YCharts

Competitors' Latest Development

  • On August 3, 2012, Glaxosmithkline Plc announced that it has completed its acquisition of Human Genome Sciences for USD3.6 billion on an equity basis, or approximately USD3 billion net of cash and debt.
  • On July 30, 2012, Abbott Laboratories announced that the European Commission (NYSE:EC) has approved HUMIRA (adalimumab) for the treatment of adults with severe axial spondyloarthritis (axSpA) who have no X-ray evidence of structural damage.
  • On July 26, 2012, Reuters reported that Glaxosmithkline Plc is recalling some of its over-the-counter headache medicine in South Africa after police discovered counterfeit versions of the painkiller.
  • On July 25, 2012, Glaxosmithkline Plc announced that the Board has declared a second interim dividend of GBP0.17 per share (Q2 2011: GBP0.16 per share) making GBP34 for the half year.
  • On July 18, 2012, Abbott Laboratories announced that it is confirming its ongoing earnings-per-share guidance for fiscal 2012 of $5.00 to $5.10, reflecting another year of expected strong performance.
  • On July 18, 2012, Vivus Inc announced that the U.S. Food and Drug Administration (FDA) has approved Qsymia (pronounced Kyoo sim ee' uh) as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index of 30 or greater (obese), or 27 or greater (overweight) in the presence of at least one weight-related comorbidity, such as hypertension, type 2 diabetes mellitus or high cholesterol (dyslipidemia).
  • On July 16, 2012, Reuters reported that Glaxosmithkline Plc is expected to announce an agreement to acquire Human Genome Sciences Inc for about $2.8 billion as soon as Monday, ending three months of its hostile pursuit of the U.S. biotechnology company.
  • On July 16, 2012, Glaxosmithkline Plc and Human Genome Sciences announced that the companies have entered into a definitive agreement under which GSK will acquire HGS for USD14.25 per share in cash.
  • On July 3, 2012, Abbott Laboratories announced that it has expanded its Healon family of ophthalmic viscosurgical devices (OVDs) with the U.S. Food and Drug Administration approval of Healon EndoCoat OVD, a device intended for use as a surgical aid in cataract extraction and intraocular lens implantation.
  • On July 2, 2012, Glaxosmithkline Plc and Theravance, Inc. announced the results of four pivotal phase III studies of investigational LAMA/LABA involving over 4,000 patients with chronic obstructive pulmonary disease.
  • On July 2, 2012, GlaxoSmithKline plc announced that it has reached an agreement with the US Government, multiple states and the District of Columbia to conclude GSK's most significant ongoing Federal government investigations.
  • On June 29, 2012, Glaxosmithkline Plc announced it has extended its tender offer to acquire all of the outstanding shares of Human Genome Sciences for USD13.00 per share in cash to 5:00 p.m New York City time on July 20, 2012.
  • On June 29, 2012, Human Genome Sciences Inc (HGS) announced statement regarding the extension by GlaxoSmithKline plc of unsolicited tender offer to acquire all the outstanding common shares of HGS at a price of $13.00 per share in cash and GSK's statement that approximately 375,526 shares of HGS common stock have been tendered into their offer.
  • On June 27, 2012, Arena Pharmaceuticals, Inc. and Eisai Inc. announced that the U.S. Food and Drug Administration has approved BELVIQ (pronounced BEL-VEEK) as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index of 30 kg/m2 or greater (obese), or 27 kg/m2 or greater (overweight) in the presence of at least one weight related comorbid condition (e.g., hypertension, dyslipidemia, type 2 diabetes).
  • On June 27, 2012, Reuters reported that watchdog group Public Citizen urged U.S. regulators on June 26, 2012, not to approve Arena Pharmaceuticals' experimental diet pill lorcaserin, citing concerns it could increase patients' risk of heart valve damage.
  • On June 25, 2012, Abbott Laboratories announced that European Committee for Medicinal Products for Human Use (CHMP) has issued a positive opinion for HUMIRA (adalimumab) in adults with severe axial spondyloarthritis (axSpA) who have no X-ray evidence of structural damage.
  • On June 19, 2012, KineMed Inc announced that it is to take part in a multiannual research and development program with Glaxosmithkline Plc which will use KineMed Inc's platform to discover biomarkers in therapeutic areas which are of interest to Glaxosmithkline Plc. The program aims to identify, optimize and validate new biomarkers which will allow decisions to be taken more quickly and with greater clarity during clinical trials of compounds used to treat muscular atrophy, fibrosis and metabolic illnesses.
  • On June 19, 2012, Reuters reported that Glaxosmithkline Plc and Novartis AG will get federal money to help develop medicines against pandemics and bioterrorist threats.
  • On June 18, 2012, Abbott Laboratories announced results from five abstracts evaluating levodopa-carbidopa intestinal gel, investigational compound for advanced Parkinson's disease.
  • On June 18, 2012, Reuters reported that the supreme court ruled on Jun 18, 2012 that pharmaceutical companies do not have to pay overtime to their representatives who visit doctors' offices to promote their products, a dispute that had threatened the industry with billions of dollars in potential liability.
  • On June 15, 2012, GlaxoSmithKline plc announced that it has received a renewed invitation from Human Genome Sciences Inc' to participate in its strategic alternatives review process which started in April.
  • On June 15, 2012, Glaxosmithkline Plc announced that the U.S. Food and Drug Administration has approved the vaccine MenHibrix [Meningococcal Groups C and Y and Haemophilus b Tetanus Toxoid Conjugate Vaccine].
  • On June 12, 2012, Stiefel, a Glaxosmithkline Plc company announced that it has entered into a worldwide agreement to acquire Toctino (alitretinoin) from Basilea Pharmaceutica Ltd. (Basilea).
  • On June 9, 2012, Glaxosmithkline Plc announced that detailed findings from a Phase III study comparing the investigational glucagon-like peptide-1 (GLP-1) receptor agonist albiglutide to prandial insulin (Lispro), were presented at the American Diabetes Association Meeting in Philadelphia, USA, and show that the effect is maintained out to 52 weeks.
  • On June 7, 2012, Glaxosmithkline Plc and XenoPort, Inc. announced that the United States Food and Drug Administration has approved Horizant (gabapentin enacarbil) Extended-Release Tablets for the management of postherpetic neuralgia (PHN) in adults.
  • On June 6, 2012, Abbott Laboratories announced results from two long-term, open-label studies, which evaluated the results of HUMIRA (adalimumab) treatment for up to 10 years in patients with long-standing, moderate-to-severe rheumatoid arthritis.
  • On June 6, 2012, Abbott Laboratories announced results from the open-label extension of the Phase 3 ABILITY-1 investigational study of HUMIRA (adalimumab), which assessed the improvement in signs and symptoms of disease for patients with active axial spondyloarthritis (axSpA) who have no X-ray evidence of structural damage.
  • On June 5, 2012, Abbott Laboratories, in cooperation with Neurocrine Biosciences, Inc. announced the initiation of a pivotal Phase 3 clinical trial designed to evaluate the safety and efficacy of elagolix in female patients with endometriosis.
  • On June 4, 2012, Reuters reported that late stage trials of two experimental skin cancer drugs from Glaxosmithkline Plc, each designed to block different pathways used by tumor cells, have found the drugs helped patients with fewer side effects than current chemotherapy.
  • On May 30, 2012, Welichem Biotech Inc. and Stiefel, a Glaxosmithkline Plc company announced that they have entered into an agreement for the acquisition by Stiefel of exclusive development and commercialization rights to the novel anti-inflammatory agent, WBI-1001, in all territories in the world outside of China, Taiwan, Macao and Hong Kong.
  • On May 21, 2012, Arena Pharmaceuticals announced the completion of an underwritten public offering of 12,650,000 shares of its common stock, including 1,650,000 shares sold pursuant to the full exercise of an over-allotment option previously granted to the underwriters.
  • On May 16, 2012, Arena Pharmaceuticals announced the pricing of an underwritten public offering of 11,000,000 shares of its common stock, offered at a price to the public of $5.50 per share.
  • On May 15, 2012, Arena Pharmaceuticals announced that it intends to offer and sell, subject to market and other conditions, shares of its common stock in an underwritten public offering.

Technical Overview


The stock has a market capitalization of $297.55M and is currently trading at $4.39 with a 52-week range of $1.22-$7.73. The stock's year-to-date performance has been 172.67%. It is currently trading above 200 SMA, but below 20 and 50 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Source: Earnings Preview: Orexigen Therapeutics

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