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Orexigen Therapeutics (OREX +13.2%) soars again today on the back of the FDA's approval of Arena...

  • Thursday, June 28, 2012, 12:33 PM ET
    Orexigen Therapeutics (OREX +13.2%) soars again today on the back of the FDA's approval of Arena Pharmaceuticals (ARNA) Belviq weight loss drug. JPMorgan ups the stock to Overweight, saying it "stands to be the biggest beneficiary" as approval for its own weight loss drug, Contrave, is still far off, which leaves a valuation gap with rivals whose drugs are closer to approval.
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This news story has 32 comments:

  •  
    Interesting how pharmas are faring post Obamacare decision...weight loss doing well, high unmet need categories, less so...
    28 Jun 2012, 12:36 PM Reply Like
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    GOOD TIME TO SHORT. ALL THE MOMO FOR ARENA WILL WEAR OFF AND ALL THESE WILL FALL BACK TO CLOSE TO WHERE THEY TOOK OFF FROM
    28 Jun 2012, 12:48 PM Reply Like
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    Someone please explain to me why every other company is benefiting from ARNA's win and ARNA is down almost a dollar just a day after approval!
    28 Jun 2012, 12:59 PM Reply Like
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    Real that is the I million dollar question!!
    28 Jun 2012, 01:19 PM Reply Like
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    I am about to pull my position out of ARNA. There are too many players in this one and it's not making any sense.
    28 Jun 2012, 01:26 PM Reply Like
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    I would already be out but Jefferies set a price target of 20
    28 Jun 2012, 01:37 PM Reply Like
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    I know and it keeps going down
    28 Jun 2012, 01:40 PM Reply Like
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    Price targets for 2013 range from 16 - 31, listen to the conference call from yesterday. Eisai picks up 90% of the post-cardio long term trial. ARENA has at least 500 million tablets ready to go. I would bet due to the huge run ARENA has had shorts are once again suppressing the price of the stock. I look forward to the next short squeeze. Long term 2013-2014 ARENA is in a very good position. Remember no REMS for ARENA and a very restrictive one for VVUS if it gets approved.
    28 Jun 2012, 01:49 PM Reply Like
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    yes it is true
    28 Jun 2012, 01:52 PM Reply Like
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    This is just bad form. I got in on ARNA at 2.23 a share and have been in and out since. The biggest gain the company has seen was when the FDA panel "recommended" approval. How is that The recommendation got more positive attraction than the approval itself. Furthermore Why are VVUS and and OREX up big while ARNA is down? Is there something I am missing here or is there something very odd going on.
    28 Jun 2012, 01:58 PM Reply Like
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    Many shorts
    28 Jun 2012, 02:00 PM Reply Like
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    Yes know that but why? I don't see why the margin/ house calls didn't come in yesterday and send the share price through the roof. Furthermore why the shares have depreciated so much today. Who bets against the odds?...
    28 Jun 2012, 02:04 PM Reply Like
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    I dont know what is going on
    28 Jun 2012, 02:05 PM Reply Like
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    Don't panic about the price dropping. It is annoying me too, but the longer term picture is bright. My advice: buy more if it continues to go down.
    28 Jun 2012, 03:21 PM Reply Like
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    Good idea
    28 Jun 2012, 03:26 PM Reply Like
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    Real, be calm, remember, by with the rumor sell with the notice. It always happens. There are a lot of speculation on ARNA. In a few days,as soon as the speculators had made their agost shares will go up again.
    28 Jun 2012, 03:27 PM Reply Like
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    I sold mine after it got approved but I never expected that the stock will go this low and VVUS and OREX which have not been approved are doing well
    28 Jun 2012, 03:29 PM Reply Like
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    by the way VVUS is down a fraction now
    28 Jun 2012, 03:30 PM Reply Like
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    I hope tomorrow is a better day. Would like to go into the weekend on a positive note
    28 Jun 2012, 03:53 PM Reply Like
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    Me too!! I bought some ARNA again
    28 Jun 2012, 03:57 PM Reply Like
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    The difference between trading and investing. I bought in at 1.80 average and have not sold, knowing that the biggest rewards post approval will be either in 3rd quarter 2013 or in 2015. A lot of the margin calls and short positions will need to be covered...this should start 6-29-12 another price spike should be expected as should a bear raid. Stay long my friends or stay home. Arena has had over a 400% return since Feb 2012, many analysts are cautious with the drug, and hence the shorts think they can strike again.

    "Bulls and Bears make money, while the pigs go to slaughter."
    28 Jun 2012, 04:53 PM Reply Like
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    Chemist, do you think that the shorts will "be able to strike again" I feel that there is no room for another bear raid on this stock. Although today was pretty disappointing.
    28 Jun 2012, 05:33 PM Reply Like
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    Thank you I will hold
    28 Jun 2012, 05:36 PM Reply Like
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    RealTime, I think the shorts will be in control as usual for now...and you will see a see-saw for awhile, tomorrow flat or up due to (up-tick rule). Ten million shares or so dropped at the same time will always have the potential to trigger stop losses, and allow a bear raid.

    A lot of shorts still have to cover, I would agree with you in that a "true bear raid" like last Friday might not happen again for awhile. A lot of profit taking right now from retail investors, and traders who got in 14 days or less pre approval will suppress the stock. In the near term I expect a 8 - 20% pop over the next 4 weeks.

    I think a slow creep will occur over the next 8 - 12 months, possible pops (if launch before Labor day, VVUS rejection/delay)
    28 Jun 2012, 06:54 PM Reply Like
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    If VVUS is rejected or delayed ARNA investors will be in a very good position. Judging from the looks of things that's a pretty good possibility
    28 Jun 2012, 07:02 PM Reply Like
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    i do agree Real Time I do think that VVUS Qnexa might not be approved especially now with this Obama health care reform I think the FDA is going to be very picky with approving drugs and the side effects and restrictions of Qnexa don't look too good imo and I think for the long term ARNA is good but we might have to be patient to see a rise in the shares until they actually start selling the drug and they have profits!!
    28 Jun 2012, 08:02 PM Reply Like
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    Maria Auxiliadora, yo he vendido mis ARNA's y he comprdo LEN, me va fantástico pero con el tiempo volveré a ARNA con másfuerza.
    Slds
    29 Jun 2012, 12:33 PM Reply Like
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    I bought LEN for the earnings play did good I like the comany though
    29 Jun 2012, 12:35 PM Reply Like
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    sorry company!!!
    29 Jun 2012, 12:35 PM Reply Like
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    Guess is time to leave ARNA relax, now is homebuilders momentum.
    29 Jun 2012, 12:47 PM Reply Like
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    the reason why everybody else vvus orex are benefiting from arena is because investors hedge funds institutional investors all beleive that arena will not be successful.that vvus and orex have a better chance grabbing a larger portion of the obese market
    30 Jun 2012, 04:14 PM Reply Like
  •  
    OREX is not even close to being approved the one that is coming up is VVUS and if VVUS gets approval or not I think ARNA will move imo but I don't expect to move up huge. 1 biotech that has my attention right now is OMPI that one keeps hitting new highs everyday and voted no to the poison pill. that company has good earnings and low p/e and rated 8 out of 10 by analysts I like the company and now even more when they voted no to the poison pill something is up imo
    1 Jul 2012, 11:30 AM Reply Like
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