Orexigen Therapeutics (OREX)
VIVUS and Arena didn’t stall all that thunder, saving some for Orexigen Therapeutics (OREX) when its weight loss drug Contrave gets put “in play” in front of a projected FDA-decision date of June 10th, 2014.
The being said, investors would be wise to learn some key lessons being offered by the behavior of also-once-cheap stocks VVUS and ARNA leading up to their respective approvals. Any of their bullishness that was going to be priced in came in the few weeks leading up to their respective FDA approvals. Immediately after their approvals, both stocks started to deflate, and have yet to revisit their per-approval peaks.
Still, for the nimble who know when to get out, OREX is one of the few cheap stocks worth a closer look.