Best of the Week
Most Popular
1. Will Gold Price Breakout? 3 Things to Watch… - Jordan_Roy_Byrne
2.China Invades Saudi Oil Realm: PetroDollar Kill - Jim_Willie_CB
3.Bitcoin Price Trend Forecast, Paypal FUD Fake Cryptocurrency Warning - Nadeem_Walayat
4.The Stock Market Trend is Your Friend ’til the Very End - Rambus_Chartology
5.This Isn’t Your Grandfather’s (1960s) Inflation Scare - F_F_Wiley
6.GDX Gold Mining Stocks Fundamentals - Zeal_LLC
7.US Housing Real Estate Market and Banking Pressures Are Building - Chris_Vermeulen
8.Return of Stock Market Volatility Amidst Political Chaos and Uncertain Economy - Buildadv
9.Can Bitcoin Price Rally Continue After Paypal Fake FUD Attack? - Nadeem_Walayat
10.Warning Economic Implosion on the Horizon - Chris_Vermeulen
Last 7 days
Is War "Hell" for the Stock Market? - 19th Apr 18
Palladium Bullion Surges 17% In 9 Days On Russian Supply Concerns - 19th Apr 18
Breadth Study Suggests that Stock Market Bottom is Already In - 19th Apr 18
Allegory Regarding Investment Decisions Made On Basis Of Government’s Income Statement, Balance Sheet - 19th Apr 18
Gold – A Unique Repeat of the 2007 and How to Profit - 19th Apr 18
Abbeydale Park Rise Cherry Tree's in Blossom - Sheffield Street Tree Protests - 19th Apr 18
The Stock Market “Turn of the Month Effect” Exists in 11 of 11 Countries - 18th Apr 18
Winter is Coming - Coming Storms Will Bring Out the Best and Worst in Humanity - 18th Apr 18
What Does it Take to Create Living Wage Jobs? - 18th Apr 18
Gold and Silver Buy Signals - 18th Apr 18
WINTER IS COMING - The Ongoing Fourth Turning Crisis Part2 - 18th Apr 18
A Stock Market Rally on Low Volume is NOT Bearish - 17th Apr 18
Three Gold Charts, One Big Gold Stocks Opportunity - 17th Apr 18
Crude Oil Price As Bullish as it Seems? - 17th Apr 18
A Good Time to Buy Facebook? - 17th Apr 18
THE Financial Crisis Acronym of 2008 is Sounding Another Alarm - 16th Apr 18
Bombs, Missiles and War – What to Expect Next from the Stock Market - 16th Apr 18
Global Debt Bubble Hits New All Time High – One Quadrillion Reasons To Buy Gold - 16th Apr 18
Will Bitcoin Ever Recover? - 16th Apr 18
Stock Market Futures Bounce, But Stopped at Trendline - 16th Apr 18
How To Profit As Oil Prices Explode - 16th Apr 18
Junior Mining Stocks are Close to Breaking Downtrend - 16th Apr 18
Look Inside a Caravan at UK Holiday Park for Summer 2018 - Hoseasons Cayton Bay Sea Side - 16th Apr 18
Stock Market More Weakness? How Much? - 15th Apr 18
Time for the Gold Bulls to Show their Mettle - 15th Apr 18
Trading Markets Amid Sound of Wars - 15th Apr 18
Sugar Commodity Buying Levels Analysis - 14th Apr 18
The Oil Trade May Be Coming Alive - 14th Apr 18
Big Cap US Stocks Fundamentals - 13th Apr 18
Jaguar Land Rover Cuts 1000 Jobs on Diesel Sales Slump, Long-term Discovery Sport Review - 13th Apr 18
Stock Market SPX May Tangle with the 50-day MA - 13th Apr 18
Longtanding Chinese War: Intrigue & Betrayal - 13th Apr 18
How I Own My Gold - 13th Apr 18
ISupply Energy Consumer Warning - Never Put Your Account Into Credit! - 13th Apr 18
SPX Resistance May Prompt A Massive Short Squeeze - 12th Apr 18
Stock Market High Volatility is Not Consistently Bearish for Stocks - 12th Apr 18

Market Oracle FREE Newsletter

Trading Lessons

Weight Loss Stocks Race to End the Obesity Epidemic With New Pills and Treatments

Companies / Healthcare Sector Apr 10, 2012 - 11:00 AM GMT

By: Money_Morning

Companies

Best Financial Markets Analysis ArticleDIANE ALTER writes: Obesity is considered the most serious health issue in the developed world. Along with growing waistlines also comes ballooning costs.

Across urbanized nations, the economic burden of obesity is estimated to be 10% of total health care costs, with projections continuing to grow as the obesity epidemic spreads.


For investors, that means weight loss stocks are poised to gain.

Here's why.

When it comes to obesity the statistics are staggering.

Currently 35.7% of U.S. adults, or more than one third, is obese. According to the Centers for Disease Control (CDC), that's a giant increase over just ten years ago.

In 2000, not a single U.S. state had an obesity rate of 30% or more. Today, 12 states have crossed that obesity threshold.

The costs attributed to obesity are estimated at $147 billion and rising.

Weight Loss Stocks: ARNA, VVUS and OREX
It is no wonder pharmaceutical companies are racing to fill the void and close the growing gap in treating this mounting epidemic.

Two leaders early in the game include Arena Pharmaceuticals Inc. (NASDAQ: ARNA) and Vivus Inc. (NASDAQ: VVUS) A third California-based company, Orexigen Therapeutics Inc. (NASDAQ: OREX), is also vying for Food and Drug Administration approval.

All three hope to bring to the market the first weight loss treatment in some 13 years.

But getting a nod from the government regulatory agency is not easy.

On March 29th, an FDA panel voted 17-6 to recommend that companies developing weight-loss therapies should conduct clinical trials to assess heart danger or review pre-approval human trial data on heart attacks and strokes.

The panel's aim is to help the agency update guidelines for bringing obesity treatments to market, according to an FDA spokesperson.

Despite the recommendation, Vivus and Arena are unlikely to be affected. According to FDA spokeswoman Erica Jefferson, "It's unlikely that the discussions over the past couple days will impact any existing applications."

The FDA is expected to rule on Vivus's drug Onexa by April 17. Meanwhile, Arena's treatment, lorcaserin, goes before the advisory panel May 10. The agency is expected to make a decision on lorcaserin by June 27.

Of the three, Orexigen is currently trailing for FDA approval.

In September, Orexigen agreed to conduct a two-year study of heart risks for its drug Contrave. The company has partnered with Takeda Pharmaceuticals of Osaka, Japan.

Weight Loss Stocks Work to Stem the Tide
Even still it has been a long road for all three of these weight loss stocks.

The FDA had previously rejected weight loss drugs from all of them, asking for more data on the safety risks.

The last obesity drug to gain FDA approval was Roche's Xencal in 1999. It was pulled from pharmacies 15 years ago when the fen-phen appetite-suppression drug was linked to heart valve abnormalities.

With FDA approval looming, investors' appetite for all three companies has been on the rise.

Vivus, which could get the first regulatory nod, also is involved in the development of drugs to treat sleep apnea, diabetes and men's sexual health. Its shares are up 134% year-to-date. The stock soared in late February after the FDA backed its weight loss drug Qnexa.

Arena also develops drugs for cardiovascular, central nervous system, inflammatory and metabolic diseases. Up 71% since January, Arena could be considered the most risky of the trio. Rumors have swirled that the company might abandon lorcaserin due to worries over cancer found in trial rats. It was the reason the FDA rejected lorcaserin in 2010.

Orexigen has been one of the best-performing biotech companies of 2012. OREX is up a whopping 138.5% since the start of the year.

However, Orexigen remains down 72% over the last five years. In early 2011, the stock sank when the FDA expressed concerns over its anti-obesity candidate. The company is burning through cash and will likely run dry by 2014.

It is too early to tell if the heft of weight loss stocks can fatten your portfolio.

But the potential for Vivus, Arena and Orexigen are huge given the giant worldwide obesity problem.

Developing a new drug that is effective and safe is a challenge, but now might be a good time to take a close look at these three biotech companies.

In the battle against obesity, weight loss stocks could be an investor's gain.

[Editor's Note: Weight loss stocks are just a small part of the brewing bull market in biotech stocks. In Bill Patalon's last report, he has identified three biotech-buyout candidates that are great "Buys" whether they get bought out or not.

All of them are quality companies focused on cancer treatments with the potential for a spring run-up. Whether it's as a near-term trade or a longer-term investment, we expect these stocks to surge.

And get this: One of those three new investment ideas has already hit Wall Street's radar screen.

To get the full report and these three recommendations, just click here.]

Source :http://moneymorning.com/2012/04/10/weight-loss-stocks-arna-vvus-and-orex-race-to-end-the-obesity-epidemic/

Money Morning/The Money Map Report

©2011 Monument Street Publishing. All Rights Reserved. Protected by copyright laws of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including on the world wide web), of content from this website, in whole or in part, is strictly prohibited without the express written permission of Monument Street Publishing. 105 West Monument Street, Baltimore MD 21201, Email: customerservice@moneymorning.com

Disclaimer: Nothing published by Money Morning should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investent advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication, or after the mailing of printed-only publication prior to following an initial recommendation. Any investments recommended by Money Morning should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company.

Money Morning Archive

© 2005-2018 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules