NEW YORK (TheStreet) -- Shares of Orexigen Therapeutics Inc. (OREX) continue to soar, up 34.81% to $5.19 Monday afternoon, after the company said the European Union review of Contrave, its weight loss drug for adults, is progressing on schedule.
In September, Orexigen received U.S. approval for Contrave from the Food and Drug Administration.
The La Jolla, CA-based company reported better than expected third quarter results this morning with earnings of $11.3 million, or 9 cents per share, surpassing analysts' estimates of a loss of 13 cents per share.
The drug developer for obesity posted revenue of $30.9 million for the quarter, significantly higher versus the consensus estimate of $8.93 million.
Separately, TheStreet Ratings team rates OREXIGEN THERAPEUTICS INC as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate OREXIGEN THERAPEUTICS INC (OREX) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, weak operating cash flow, generally high debt management risk and generally disappointing historical performance in the stock itself."