Orexigen Therapeutics

US: OREX

$0.1m market cap

$0 last close

Orexigen is a biopharmaceutical company focusing on obesity treatments. It will sell its sole product, Contrave, through its own salesforce in the US after taking back the rights from partner, Takeda. Contrave was launched in the US in Oct 2014 and approved in the EU in March 2015 under the trade name Mysimba.

Investment summary

Contrave sales took a bit of a breather during Q317, which is considered part of the off-season for obesity drugs, with net US Contrave sales falling 14% sequentially. A more unfavorable payer mix, which reduced average net revenue per unit, as well as some excess inventory in the retail channel, added to the weakness. On a year-over-year basis, however, Q317 prescription growth continues to be strong, up 26%. A key overhang that remains is the renegotiation/restructuring of the $165m in 0% convertible senior secured notes, which may need to be repurchased in mid-2018.

Y/E Dec
Revenue (US$m)
EBITDA (US$m)
PBT (US$m)
EPS (c)
P/E (x)
P/CF (x)
2015A 24.5 (60.3) (67.3) (523.81) N/A N/A
2016A 33.7 (134.6) (138.1) (972.82) N/A N/A
2017E 84.7 (134.9) (137.7) (713.33) N/A N/A
2018E 156.5 (64.4) (68.9) (353.59) N/A N/A
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (US$m) 124.2
Forecast gearing ratio (%) 147
Price performance
%
1m
3m
12m
Actual (71.4) (88.5) (99.8)
Relative* (71.6) (87.7) (99.8)
52-week high/low US$1.8/US$0.0
*% relative to local index