Orexigen (OREX) and Roche Look to Take Advantage of Lucrative Anti-Obesity Drug Market

NEW YORK, NY — (Marketwire) — 06/12/12 — Despite growing global economic concerns the Biotech Industry has shown investors striking gains in 2012. The SPDR S&P Biotech ETF (XBI) is up over 23 percent year-to-date, nearly 10 times the 2.75 percent gain from Dow Jones over the same period. The anti-obesity drug market has been a hot topic recently as companies race to bring the first weight loss pill to market in nearly 13 years. Five Star Equities examines the outlook for companies in Biotech Industry and provides equity research on Orexigen Therapeutics, Inc. (NASDAQ: OREX) and Roche Holding Ltd. (PINKSHEETS: RHHBY).

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Obesity in the U.S. has become a major problem. According to the National Institute of Health in 2009-2010 35.7 percent of adults in the U.S. were obese. On average it is estimated that an obese person spends $1,429 more normal-weight individuals. In 2003, it was estimated that as much as $75 billion of the nation’s public health cost was associated with obesity. If something is not done to slow down U.S. obesity rates it is predicted that obesity related spending will rise to $343 billion in 2018 according to numbers from the National Institute of Health.

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Orexigen’s Contrave is an investigational medication for the treatment of obesity. With its unique mechanism of action in the CNS, Contrave has the potential to change the way obesity is treated by initiating weight loss by reducing appetite and increasing metabolism. Also by allowing the body to sustain continued weight loss by offsetting its natural tendency to fight back and slow down the weight loss process and addressing the reward system in the brain that causes food cravings.

Headquartered in Basel, Switzerland, Roche is a leader in research-focused healthcare with combined strengths in pharmaceuticals and diagnostics. Roche is the world’s largest biotech company with truly differentiated medicines in oncology, virology, inflammation, metabolism and CNS. Roche’s Xenical was the last weight-loss drug approved by the FDA in 1999.

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