Weight Loss Stocks In Action

Anyone who has been following the world of emerging pharmaceutical companies in the last few months has probably heard a good amount about the two new FDA-approved prescription weight loss drugs Qsymia and Belviq.

We don't have enough market data to properly estimate just how successful these drugs will (or will not) be when they've entered the prescription weight loss market, but if the market capitalization of Vivus (NASDAQ:燰VUS) and Arena (NASDAQ:燗RNA) are any indication, the market is pricing in future blockbuster status.

Often neglected in the discussion is Orexigen (NASDAQ: OREX), which has another obesity drug called Contrave being developed. Contrave is currently in a phase III trial called "The Light Study" which won't conclude until 2017 based on estimates.

Many investors are not keen on Orexigen for this reason, and waiting for the company to submit an NDA so that it can enter the obesity drug market soon. The annoying part, for OREX shareholders, is that the resubmission will probably come in 2014.

Lemon Diet

Nonetheless, Contrave has a few qualities that will distinguish it from the other two candidates later on. The drug is comprised of two active ingredients - naltrexone and bupropion.

Lemon Juice Diet

These compounds are mood-altering, like the competition, but the addition of bupropion makes it an addiction-tailored antidepressant. Bupropion is used to help smokers quit through mood elevation/stability, and research suggests that the strategy doctors employ to combat nicotine addiction can be used for food and obesity over-consumption as well.

The other active ingredient in Contrave, naltrexone, antagonizes opiate receptors. This means that the "good feeling" opioids released by the body after eating will be eliminated (or at least significantly diminished) by Contrave. Orexigen basically aims to alter patients' behavior by removing the chemistry that promotes it.

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