VIVUS, Inc. (VVUS), Arena Pharmaceuticals, Inc. (ARNA): Weight Loss Drug Sweepstakes

Could Orexigen throw a wrench in this system?

Since Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) and VIVUS, Inc. (NASDAQ:VVUS) would both have their drugs on the market for a while before Orexigen has its drug approved, Vivus and Arena may enjoy their beneficial relationship.

Since Orexigen Therapeutics, Inc. (NASDAQ:OREX)’s drug is essentially in the middle of both of the drugs in terms of risk/benefit (provided that Orexigen’s phase III trial comes back clean) it could steal prescriptions from both. While in this scenario there still may be a beneficial relationship for all three companies in terms of getting into doctor’s offices, it would appear as though Orexigen might benefit from this relationship more than both Vivus or Arena.

Foolish bottom line

While investors in each company like to think that their company’s treatment is superior, all companies in a new area benefit from getting into doctor’s offices. With the recent classification of obesity as a disease, both Vivus and Arena should also gain more attention from the medical community. It appears that, although competitors Vivus and Arena might be mutually benefiting from the attention that they are receiving from doctors. Orexigen may be able to benefit from the relationships built by Vivus and Arena. However, it is also possible for Orexigen to cut into sales of both drugs, only time will tell if the relationship between all three of the companies will be able to be beneficial.

Alexander Maxwell has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Alexander is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

The article Weight Loss Drug Sweepstakes originally appeared on Fool.com and is written by Alexander Maxwell.

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