Orexigen: S. Korea Oks Contrave Monotherapy For Weight Management In Overweight

(RTTNews) - Orexigen Therapeutics Inc.(OREX) said that the Korean Ministry of Food and Drug Safety or MFDS has approved Contrave or naltrexone HCI and bupropion HCI extended release monotherapy for weight management in overweight or obese adult patients.

In the pre-market, OREX is currently trading at $0.48, up $0.03 or 7.36 percent.

In anticipation of a commercial launch this quarter, Orexigen has shipped an initial order of Contrave tablets to Kwang Dong Pharmaceutical Company, Ltd., the Company's partner for South Korea. This shipment and a subsequent firm order from Kwang Dong for later in 2016 have a combined value to Orexigen of approximately $5.9 million.

Orexigen has shipped the first order of Contrave tablets to partner Kwang Dong in anticipation of a commercial launch later this quarter.

Obesity and related comorbidities are a serious health problem in South Korea, where approximately 38% of men and 26% of women are obese according to recent statistics from the National Health Institute. In 2015, sales of anti-obesity medicines exceeded $71 million in Korea, a 21% increase over the prior year.

As per the terms of the previously announced South Korea distributorship agreement, Kwang Dong will be responsible for all commercialization activity and expenses. Orexigen will supply Contrave tablets to Kwang Dong in exchange for a $7 million payment received in 2015, approximately 35 - 40% of net sales, potential sales-based milestone payments, and other fees.