The Burrill Report


Japan's Takeda is placing summer’s second major bet on an obesity drug with a $50 million investment in Orexigen's Contrave, a combination drug meant to help people tackle the biology and behaviors behind overeating. Payments of more than $1 billion await Orexigen if it hits unspecified regulatory and sales-based milestones in the United States, Canada, and Mexico, the countries covered by its new deal with Takeda.

Under the terms of the agreement, Orexigen could also earn tiered double-digit royalty payments, assuming Contrave successfully reaches the market. An FDA decision on whether or not to approve the drug is due by January 31, 2011.

The $50 million Takeda will front for Contrave matches dollar for dollar what Tokyo's Eisai is providing upfront for Arena’s obesity drug candidate, lorcaserin. While Eisai was much more generous with details of its deal—it will pay Arena up to $160 million in milestone payments and offers a detailed method for calculating what Arena will be paid for supplying the drug—it is likely that both deals are structured to minimize losses for their backers should either drug meet an inglorious end on the way to a final FDA decision.

Qnexa, the summer's third closely-watched contender for approval in treating obesity, had a disappointing bout with the FDA's Endocrinologic and Metabolic Drugs Advisory Committee in July when the lack of long-term safety data led experts to recommend against approval. That FDA is expected by the end of October to decide whether to approve the marketing of Qnexa.

Now the same committee is scheduled to review lorcaserin on September 16, ahead of the October 22 date by which the FDA’s expected to decide on whether to approve it.

About two thirds of American adults are overweight, leaving many vulnerable to serious medical consequences, such as type 2 diabetes, cardiovascular disease, cancer and depression.



September 03, 2010
http://www.burrillreport.com/article-takeda_signs_on_to_back_contrave.html