Diet-drug makers soar on FDA nod

BOSTON (MarketWatch) — Shares of Orexigen Therapeutics Inc. soared Wednesday on news that an advisory panel of the U.S. Food and Drug Administration has voted to recommend the agency approve the company’s new diet drug Contrave.
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                                                                    Late Tuesday, an FDA panel voted in favor of Contrave for the treatment of obesity. While the FDA is not bound to the recommendation of its advisory panels, it generally follows them.

Earlier this year, FDA panels declined to recommend approval of two rival diet drugs, Vivus Inc.’s(VVUS 8.95, +1.15, +14.74%)  Qnexa and Arena Pharmaceuticals’s(ARNA 1.57, +0.16, +11.35%)  lorcaserin, citing safety concerns. Read on past FDA votes.

Vivus and Arena investors on Wednesday, however, appeared heartened by the Orexigen vote, pushing up shares of Vivus 15% and Arena shares 16%. Read more on the new diet drugs.

J&J (JNJ 62.41, +0.10, +0.16%)  shares were down marginally at $62.23.

The health-care-products giant issued a formal bid for Dutch vaccine developer Crucell N.V. (CRXL 31.52, -0.02, -0.06%)  of EUR24.75 a share, or $2.3 billion.

J&J already holds an 18% stake in Crucell. The company added the bid represents a 58% premium over Crucell’s closing price the day before J&J made its first tentative offer in September.

The Crucell offer, which is supported by both boards, will end on Feb. 16.

The NYSE Arca Pharmaceuticals Index(DRG 298.60, +0.40, +0.13%)  and the NYSE Arca Biotechnology Index(BTK 1,165, +0.11, +0.01%)  were both nominally higher at 298.40 and 1,166.19, respectively.