Orexigen Therapeutics has filed for Chapter 11 bankruptcy protection after sales of its obesity drug, Contrave, failed to meet high expectations.
Contrave has faced stiff competition among other weight-loss drugs, including Arena Pharmaceutical’s treatment, Belviq. FDA oversight of the drugs has also been strict with the agency expressing worries that the drugs could cause heart problems.
According to the San Diego Union-Tribune, Contrave has, so far, failed to recoup development costs simply because doctors haven’t been recommending it enough.
Orexigen is reportedly hoping to sell off its assets including Contrave. The company has reassured patients that they can still receive the medication and it hopes that it will gain enough traction among physicians to become profitable by 2019.
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