Orexigen Therapeutics - Driven by DTC

Contrave sales took a bit of a breather during Q317, which is considered part of the off-season for obesity drugs, with net US Contrave sales falling 14% sequentially. A more unfavorable payer mix, which reduced average net revenue per unit, as well as some excess inventory in the retail channel, added to the weakness. On a year-over-year basis, however, Q317 prescription growth continues to be strong, up 26%. A key overhang that remains is the renegotiation/restructuring of the $165m in 0% convertible senior secured notes, which may need to be repurchased in mid-2018.