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Orexigen Therapeutics (OREX) Price Target Raised to $26 at Piper

March 3, 2015 10:57 AM EST
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Price: $0.22 --0%

Rating Summary:
    3 Buy, 7 Hold, 1 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 9 | Down: 9 | New: 42
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(Updated - March 3, 2015 12:46 PM EST)

Piper Jaffray analyst Charles Duncan maintained an Overweight rating on Orexigen Therapeutics (NASDAQ: OREX) and raised his price target to $26.00 (from $16.00) intra-day Tuesday, after the company released an 8-K regarding U.S. patent 8,969,371 ('371) and a series of applications.

Duncan notes that disclosed in the patent and applications are details on the LIGHT study interim at 25% of events. He notes Contrave demonstrated a statistically significant benefit over placebo for CV events, including CV death. Additionally, the patent extends patent protection for Contrave to 2034.

Duncan said the news could turn the obesity/metabolic syndrome market on its head. "We see this CVOT effect as surprisingly positive and it has several implications, in our view for the potential of Contrave," he commented. "These include possibly driving competitive advantage in the US market, and enhancing probability of approvals ex-US. We also see the new patent as “galvanizing” the IP protection behind Contrave and thus ensuring that it is a longlived asset. Finally, in terms of life cycle management efforts in combining the drug in a regimen with anti-diabetic drugs, we see these data as ramping interest in these efforts by the company and its potential collaborators."

The analyst also sees newsflow soon. He said the 50% interim analysis is expected sometime this quarter, based on prior comments from the company.

For an analyst ratings summary and ratings history on Orexigen Therapeutics click here. For more ratings news on Orexigen Therapeutics click here.

Shares of Orexigen Therapeutics closed at $5.79 yesterday.



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Piper Jaffray, Charles Duncan