Takeda Exits Contrave Deal But Orexigen Insists Drug Can Grow

16 Mar 2016

• By Lisa LaMotta

Beware the Ides of March, especially if you're an investor in the obesity drug market. Orexigen added further evidence that the market is crumbling as it hitched its wagon to a partner that is even worse off.

Orexigen Therapeutics Inc. did its best to put a positive spin on its big pharma partner Takeda Pharmaceutical Co. Ltd. exiting the alliance for Contrave, and announced a smaller partnership in hopes of distracting from the news. Yet, investors remain unenthused by the biotech's new strategy for its obesity drug.

The La Jolla, Calif. biotech announced March 15 that its Japanese pharma partner Takeda would be returning the rights to...