Risks vs. Benefits of Bariatric Surgery Might Put Obesity Pills in Lime Light (ARNA) (VVUS) (OREX)
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Obesity-pill makers might be seeing a little bit of upside following the release of a new study on bariatric surgery. The American Society for Metabolic & Bariatric Surgery said about 220,000 procedures were performed in the U.S. during 2009, presumably the most recent data available.
Data points to cost of the surgery as well as benefits. Most spend around $28,000 for the procedure, with no reduction in overall expenses observed.
In addition, while benefits for a single person can be observed, an economies of scale-like downfall happens in benefits versus risks are observed when everyone is thrown into the mix. A Swedish reserach firm found that prescription usage decreased, but hospital costs rose over time. The U.S. Veterans Department also said that there was no observable adjustment to healthcare spending.
Though heart disease and diabetes were noticeably lower, bariatric surgery wasn't shown to extend people's lives.
The study underscored the need for other treatments, especially with healthcare plans under the knife.
Makers of weight-loss drugs like VIVUS, Inc. (Nasdaq: VVUS), Orexigen (Nasdaq: OREX), and Arena Pharmaceuticals (Nasdaq: ARNA) could benefit as the pills become a better choice in the "Battle of the Bulge." Shares of all three are down Thursday.
Data points to cost of the surgery as well as benefits. Most spend around $28,000 for the procedure, with no reduction in overall expenses observed.
In addition, while benefits for a single person can be observed, an economies of scale-like downfall happens in benefits versus risks are observed when everyone is thrown into the mix. A Swedish reserach firm found that prescription usage decreased, but hospital costs rose over time. The U.S. Veterans Department also said that there was no observable adjustment to healthcare spending.
Though heart disease and diabetes were noticeably lower, bariatric surgery wasn't shown to extend people's lives.
The study underscored the need for other treatments, especially with healthcare plans under the knife.
Makers of weight-loss drugs like VIVUS, Inc. (Nasdaq: VVUS), Orexigen (Nasdaq: OREX), and Arena Pharmaceuticals (Nasdaq: ARNA) could benefit as the pills become a better choice in the "Battle of the Bulge." Shares of all three are down Thursday.
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