Orexigen Therapeutics first-quarter net loss decreases to $14.1 million

May 11 2010

Orexigen® Therapeutics, Inc. (Nasdaq: OREX), a biopharmaceutical company focused on the treatment of obesity, today announced financial results for the first quarter of 2010.  For the quarter ended March 31, 2010, Orexigen reported a net loss of $14.1 million, or $0.30 per share attributable to common stockholders, as compared to a net loss of $19.3 million, or $0.56 per share attributable to common stockholders, for the first quarter of 2009.  As of March 31, 2010, Orexigen had $17.8 million in cash and cash equivalents and an additional $57.5 million in marketable securities, for a total of $75.3 million.

"We are successfully executing on the three priorities we established at the beginning of the year:  the Contrave® New Drug Application, driving a partnership process, and preparation for a Contrave launch," said Michael Narachi, President and CEO of Orexigen.  "Having submitted our NDA for Contrave in the first quarter, the development team continues to work diligently in anticipation of key steps in the review process.  In parallel, we continue to advance our commercial strategy in order to ensure the ability to launch on our own or hand-in-hand with a partner."  

Total operating expenses for the first quarter of 2010 were $14.0 million compared to $19.1 million for first quarter of 2009.  The decrease in operating expenses primarily reflects a reduction in research and development expenses of $7.8 million, principally related to the completion of Contrave Phase 3 clinical trials and completion of the Phase 2 clinical trial for Empatic, offset partly by an increase in general and administrative costs of $2.7 million due principally to increases in salaries and personnel related costs, stock-based compensation expense and marketing expenses.

First Quarter 2010 Highlights

• Submitted Contrave NDA to the FDA.
• Executed a manufacturing services agreement with Patheon to help ensure stable commercial supply of Contrave.
• Appointed Peter Honig, Ph.D. and Wendy Dixon, Ph.D. to the board of directors.  Dr. Honig brings to the Orexigen board over 20 years of clinical and regulatory experience from past roles in industry and the FDA. Most recently, he was Senior Vice President of Worldwide Regulatory Affairs and Product Safety at Merck & Company and co-Chair of Merck's Late Development Review Committee overseeing the company's late stage pipeline.  Dr. Dixon brings 30 years of pharmaceutical development and commercial experience to the Orexigen board. Most recently, she was the President of Global Marketing and Chief Marketing Officer at Bristol-Myers Squibb.

SOURCE Orexigen Therapeutics, Inc.