Orexigen adopted this course of action following the receipt of complete response letter from the US Food and Drug Administration on 31 January 2011 regarding the new drug application for the company’s obesity drug Contrave.
As part of this process, Orexigen decided to organize around the near-term activities it intends to conduct as well as reduce its cash expenditures which are expected to be around $5m.
Orexigen CEO Mike Narachi said they continue to believe in the potential of Contrave and look forward to discussions with the FDA.
"Unfortunately, given the near term uncertainty of Contrave approval, we felt it prudent to consolidate and focus our resources," Narachi said.