How Will Orexigen Therapeutics (OREX) Stock Respond to FDA's Contrave Approval?

Updated from 2:13 p.m. with closing price information.

NEW YORK (TheStreet) -- The FDA gave approval Thursday to Orexigen Therapeutics'  (OREX) diet pill Contrave, which became just the third obesity treatment to receive FDA approval in more than 10 years, according to Reuters.

The company did not announce the pill's release date or price.

The FDA delayed its decision on the drug in June for three months because of concerns about sufficient warnings on the packaging. Contrave contains the antidepressant bupropion, so the package will have a warning about increased risk of suicidal thoughts and behaviors.

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Contrave combines bupropion with Orexigen's formulation of naltrexone, designed to prevent drug dependence.

Vivus' (VVUS) Qsymia and Arena Pharmaceuticals'  (ARNA) Belviq are the other two obesity treatments approved by the FDA, both in 2012.

Orexigen shares fell 10.51% to $5.28 at the closing bell Thursday. More than 23.3 million shares changed hands, compared to the average volume of 3,421,170.

OREX Chart OREX data by YCharts

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