N@N

Orexigen Therapeutics, Arena Pharmaceuticals, Vivus, MoneyGram International and Western Union

^{Published on 2010-12-09 21:00:33 - Market Wire}
 

CHICAGO--([ BUSINESS WIRE ])--Zacks.com Analyst Blog features: Orexigen Therapeutics Inc. (Nasdaq: [ OREX ]), Arena Pharmaceuticals Inc. (Nasdaq: [ ARNA ]), Vivus Inc. (Nasdaq: [ VVUS ]), MoneyGram International Inc. (NYSE: [ MGI ]) and Western Union Inc. (NYSE: [ WU ]).

Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=4579 ]

Here are highlights from Wednesdaya™s Analyst Blog:

FDA Panel Backs OREXa™s Contrave

Orexigen Therapeutics Inc. (Nasdaq: [ OREX ]) received a boost when an advisory panel of the US Food and Drug Administration (FDA) voted in favor of approving its obesity drug, Contrave. Contrave, a combination therapy, aims at addressing the physiological and behavioral causes of obesity.

The FDAa™s Endocrinologic and Metabolic Drugs Advisory Committee voted 13 - 7 in favor of approving the drug and concluded that the potential benefits associated with the use of the drug outweighed the potential risks. The panel also voted 11 - 8 in favor of a study to evaluate cardiac risks associated with Contrave as a post-approval necessity.

A final response from the FDA regarding the approval of Contrave is expected early next year (target date: January 31, 2011). Even though the regulatory agency is not bound to follow the advice of its advisory committee, the recommendation of the panel is usually considered while deciding the fate of a candidate.

We remind investors that the New Drug Application (NDA), seeking to market the obesity candidate in the US, was submitted by Orexigen in March 2010. The substantial amount of evidence gathered through the Contrave Obesity Research (COR) clinical program formed the basis of the application. The COR program studied more than 4,500 patients.

The positive opinion for Orexigena™s obesity candidate is a welcome departure from the FDAa™s refusal to approve Arena Pharmaceuticals Inc.'s (Nasdaq: [ ARNA ]) obesity candidate lorcaserin and Vivus Inc.'s (Nasdaq: [ VVUS ]) obesity candidate Qnexa in the present form because of safety concerns. Both rivals failed to get a positive opinion from the advisory panels. Subsequently, the FDA issued complete response letters to the companies.

MoneyGram Proved Innocent

On Tuesday, MoneyGram International Inc. (NYSE: [ MGI ]) received a reversal of $16.5 million as the verdict that was passed against it in a patent-infringement lawsuit filed by Western Union Inc. (NYSE: [ WU ]) in 2009 was proved invalid. The US Court of Appeals for the Federal Circuit in Washington ruled out the verdict that was passed by the lower court of Texas in 2009.

Previously, Western Union had charged MoneyGram of contravening certain patents related to money transfer through telephones and other sources that do not require written forms. In 2009, a federal jury in Texas had also penalized MoneyGram with a $16.5 million payment to Western Union.

However, MoneyGram appealed to the US Federal Court and yesterdaya™s ruling has made the 2009 verdict invalid, thereby saving the already loss-making money transfer company.

Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: [ http://at.zacks.com/?id=5514 ].

About Zacks Equity Research

Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.

Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.

Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: [ http://at.zacks.com/?id=5516 ]

About Zacks

Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at [ http://at.zacks.com/?id=4580 ].

Visit [ http://www.zacks.com/performance ] for information about the performance numbers displayed in this press release.

Follow us on Twitter: [ http://twitter.com/ZacksResearch ]

Join us on Facebook: [ http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts ]

Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.