Shares of Orexigen Therapeutics Inc. (NASDAQ: OREX), a biopharmaceuticals company engaged in the development of pharmaceutical product candidates for the treatment of obesity, have risen sharply in early trading today.
OREX shares rose to an intra-day high of $3.84 in early trading today. At last check, the stock was trading 10.88% higher at $3.71 on above average volume of 2.21 million.
So what has sparked the rally in OREX shares today?
OREX shares are rising after Arena Pharmaceuticals’ (NASDAQ: ARNA) weight loss drug received a positive recommendation from a FDA advisory panel. The development has raised the chances of an approval for ARNA’s weight loss drug.
OREX’s own weight loss drug Contrave was rejected by the FDA last year. But the latest development has boosted the chances of an eventual approval for Contrave as well.
Earlier this week, Orexigen Therapeutics also released its first-quarter financial results. The company reported a net loss of $10.4 million, or $0.16 per share for the quarter.
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