VIVUS, Inc. (VVUS), Arena Pharmaceuticals, Inc. (ARNA), Orexigen Therapeutics, Inc. (OREX): The Big Weight-Drug Wait

“Wait” seems to be the operative word for the obesity drug industry these days. Investors in VIVUS, Inc. (NASDAQ:VVUS) are still waiting to see if Qsymia can attain the levels of commercial success that they anticipated. Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) anxiously awaits finalization of scheduling for Belviq by the slow-moving U.S. Drug Enforcement Administration. But the biggest wait of all belongs to Orexigen Therapeutics, Inc. (NASDAQ:OREX). Here’s the latest on the waiting game for the third potential weight-loss drug to hit the market — Orexigen Therapeutics, Inc. (NASDAQ:OREX)’s Contrave.

In a hurry
After the initial New Drug Application, or NDA, for Contrave was not approved by the U.S. Food and Drug Administration, Orexigen hurried to move forward with the cardiovascular study needed to satisfy the FDA. The company launched this additional research, called the Light Study, in June. By early July, Orexigen announced that enrollment was going much faster than initially expected and could wrap up in first quarter of 2013 — taking around half the time originally anticipated.

That outlook actually proved to be pessimistic. Orexigen Therapeutics, Inc. (NASDAQ:OREX) completed screening for the Light Study by mid-December, enrolling around 9,000 patients to participate in the study and cutting off more than a year from the initial timetable. The next major milestone for the research will be an interim analysis. That analysis can’t occur until 87 or so major adverse cardiovascular events, or MACE, occur with the patients. After the herculean efforts to get the study going so rapidly, Orexigen must now essentially wait for bad things to happen.

In January, the company announced that the resubmission process for the Contrave NDA could be hurried along somewhat. The FDA will allow a summary report from the Light Study interim analysis to be used with the NDA in lieu of a complete report. While the complete clinical study report will be required within 60 days of the resubmission, this decision cuts time out of the process.

How long will the waiting game take? Orexigen Therapeutics, Inc. (NASDAQ:OREX) says that plans are to submit the NDA again by the end of this year. However, company executives have hedged in recent comments, stating that this time frame could be pushed back to early 2014 if the MACE rate is on the low end of the target 1% to 2% range.

Late to the game?
A key question for investors looking at Orexigen relates to how successful Contrave can be as a late entrant to the obesity drug market. With Qsymia already on the market and Belviq likely to launch in the U.S. any day now, will Contrave be too late to the game? The answer is: “It depends.”