BOSTON ( TheStreet) -- More responses to my special midweek, all-Twitter version of the Biotech Stock Mailbag:
@kevinmcgreevey: "How does $orex keep going up with that joke of a drug?"
I don't consider Orexigen Therapeutics' (OREX) obesity drug Contrave to be a joke. Contrave is probably inferior to Vivus' (VVUS) Qnexa but it's better than Arena Pharmaceutical's (ARNA) lorcaserin, which isn't much more effective than placebo.Don't forget, Contrave was the only obesity drug of the three to win a positive advisory panel vote last year. Lingering cardiovascular safety concerns was the outstanding issue that prevented FDA from approving it. @pelion2001: "Dose of reality needed w/ OREX phase 2 interim min 2 yrs off + stock flying." I'm surprised traders are surprised that Orexigen shares are moving higher -- up as much as 30% since last Thursday -- in sympathy with the positive panel vote on Vivus' Qnexa. Don't we see this type of speculative trading pattern all the time? I agree with the sentiment that Orexigen's fate is not tied directly to Vivus or last week's panel decision, which means Orexigen's recent uptick is hard to justify on a fundamental basis.
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