« Back

Orexigen Therapeutics Inc., a health-care company focused on obesity, closed 8.3% higher than its initial public offering price on its first day of trading on Thursday.

Orexigen, which sold 7 million shares compared with the 6 million originally offered, opened at $12.50 on the Nasdaq Stock Market compared with its IPO price of $12. The stock closed at $13.

Orexigen was priced at the midpoint of the expected range of $11 to $13 a share, set by underwriters Merrill Lynch & Co., J.P. Morgan Chase & Co., JMP Securities and Leerink Swann & Co.

Venture capital firm Domain Associates is Orexigen's largest shareholder with a 16.2% stake.

The company marks the 13th stock exchange debut from the health-care sector this year, but while the sector has been busy, the returns have been disappointing.

The average one-day return is 7%, but the average return to date is a meager 0.03%, according to data tracker Dealogic.

Orexigen, which is based in San Diego, develops products aimed at central nervous system, or CNS, disorders, focusing largely on obesity. The products are a combination of generic drugs, which Orexigen has screened for synergistic CNS activity.

The company's lead product candidates are Contrave and Empatic. Contrave is in a Phase III clinical trial, and Empatic is in a Phase IIb trial.

Orexigen will use the IPO proceeds to fund clinical trials for Contrave and Empatic and for other research and development.  

« Back