Orexigen, Vivus Shares Rise On Obesity Drug Data

NEW YORK (AP) — Shares of Orexigen Therapeutics Inc. gained ground Wednesday on positive midstage study data for its obesity drug candidate Empatic.

Shares of Vivus Inc. rose, too, as investors appeared to discount Empatic as a threat to the company's own obesity drug candidate, Qnexa.

On Tuesday, Orexigen said its obesity drug candidate Empatic met treatment goals in a midstage study. Empatic reduced the weight of study subjects by 9.9 percent, according to Orexigen.

Earlier this month, Vivus said Qnexa met key weight loss goals in two late-stage studies, reducing weight in patients buy up to 14.7 percent in one clinical trial. A second study showed weight loss of about 13.2 percent. The drug also prompted improvement in blood pressure and diabetes risk factors.

Although it's scientifically unsound to compare drugs' efficacy using data from two different studies rather than a head-to-head study, investors seemed to view Orexigen's study results as a positive sign for Vivus' drug candidate.

"Another worthy agent enters the fray, but Qnexa retains the crown," wrote Merriman Curhan Ford analyst Michael G. King Jr. in a note to clients. "We expect to see strength in Vivus shares today, as it is our view that the expectation of better results from the Empatic Phase II study have been an overhang on the shares."

King reaffirmed a "Buy" rating on Vivus.

Orexigen shares gained 17 cents to $10 in afternoon trading, while Vivus shares added 43 cents, or 4.2 percent, to $10.63.