Chris Lau
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Chris Lau in Value Stocks,

Orexigen Flies to the Moon

It is about time. After reverse-splitting in July, Orexigen (OREX) won a deal with Valeant Pharmaceuticals (VRX) to commercialize Contrave® (naltrexone HCl / bupropion HCl extended release) in Canada.

Valeant will be:

  • obtaining Canadian regulatory approval and for all commercialization activity and expenses.

Orexigen will:

  • supply Contrave tablets to Valeant Canada or its affiliates for an agreed transfer price and certain potential regulatory and sales milestone payments

January 2017 is the date of regulatory approval in Canada. The TAM (total addressable market) for obesity in Canada is $4.6 billion to $7.1 billion.