Zacks Investment Research downgraded shares of Orexigen Therapeutics Inc. (NASDAQ:OREX) from a hold rating to a sell rating in a report released on Tuesday morning.

According to Zacks, “Sales of Orexigen’s sole marketed drug, Contrave, are yet to pick up. Moreover, Orexigen’s dependence on Contrave for growth and the lack of prospective pipeline candidates is concerning. Although encouraged by the company’s plans to boost Contrave sales through a more targeted approach, we note that driving growth in the branded obesity segment remains challenging, fraught with execution risks. Competition in the space is also growing with the entry of new products. Contrave is facing a patent challenge as well. However, the obesity market has huge commercial potential. Contrave could bring in multi-million dollar sales for the company. Moreover, we are positive on the company’s collaboration agreement with Valeant for the commercialization of the drug.”

Shares of Orexigen Therapeutics (NASDAQ:OREX) opened at 3.46 on Tuesday. The stock’s 50 day moving average is $3.84 and its 200 day moving average is $4.58. The company’s market capitalization is $50.47 million. Orexigen Therapeutics has a 12 month low of $3.18 and a 12 month high of $34.40.

Orexigen Therapeutics (NASDAQ:OREX) last posted its quarterly earnings data on Thursday, August 4th. The biopharmaceutical company reported ($1.73) EPS for the quarter, missing the consensus estimate of ($1.47) by $0.26. The firm had revenue of $7.79 million for the quarter, compared to the consensus estimate of $6.88 million. Orexigen Therapeutics had a negative return on equity of 380.26% and a negative net margin of 275.98%. The company’s revenue was up 50.0% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.18) EPS. On average, equities analysts predict that Orexigen Therapeutics will post ($6.38) EPS for the current fiscal year.

Hedge funds have recently added to or reduced their stakes in the company. BVF Inc. IL bought a new stake in Orexigen Therapeutics during the second quarter valued at $2,258,000. KCG Holdings Inc. increased its stake in Orexigen Therapeutics by 231.5% in the second quarter. KCG Holdings Inc. now owns 264,713 shares of the biopharmaceutical company’s stock valued at $114,000 after buying an additional 184,861 shares in the last quarter. Renaissance Technologies LLC increased its stake in Orexigen Therapeutics by 34.8% in the first quarter. Renaissance Technologies LLC now owns 2,381,100 shares of the biopharmaceutical company’s stock valued at $1,340,000 after buying an additional 614,900 shares in the last quarter. BlackRock Fund Advisors increased its stake in Orexigen Therapeutics by 3.0% in the first quarter. BlackRock Fund Advisors now owns 4,581,728 shares of the biopharmaceutical company’s stock valued at $2,578,000 after buying an additional 134,325 shares in the last quarter. Finally, Foresite Capital Management III LLC increased its stake in Orexigen Therapeutics by 0.9% in the first quarter. Foresite Capital Management III LLC now owns 3,027,354 shares of the biopharmaceutical company’s stock valued at $1,703,000 after buying an additional 27,354 shares in the last quarter.

Orexigen Therapeutics Company Profile

Orexigen Therapeutics, Inc is a biopharmaceutical company. The Company is focused on the treatment of obesity. The Company’s product, Contrave, is approved in the United States by the United States Food and Drug Administration as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kilograms per square meter or greater (obese) or 27 kilograms per square meter or greater (overweight) in the presence of a weight-related comorbid condition.

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