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Orexigen: Contrave Script Sales Dip. Why?

Orexigen (OREX) investors saw the second week of script performance that was below par. Last week's total scripts saw a modest 2% gain, while this week saw a 0.6% decline. New scripts for Contrave also saw a decline of 2%. The silver lining for Contrave was a 10.4% gain in its refills.

Chart Source - Spencer Osborne

When Contrave was launched, it carried a price point that was substantially lower than Belviq from Arena (ARNA) or Qsymia from Vivus (VVUS). The pricing advantage combined with 900 sales reps and a more mature space allowed Contrave to deliver the most impressive launch of the three new anti-obesity drugs.

Chart Source - Spencer Osborne

The impressive launch of Contrave may have seen a hurdle that investors did not anticipate. That hurdle would be competitor Belviq lowering its own price to a very competitive level with Contrave. Thus far, the result seems to… Read More …