Wednesday, February 9, 2011

Orexigen Therapeutics Cuts 40 Percent

San Diego-based Orexigen Therapeutics, which is developing biopharmaceuticals focused on treating obesity, said Wednesday afternoon that it is cutting 40 percent of its staff, or 23 employees. According to Orexigen, the move comes as a result of receiving a Complete Response Letter from the U.S. Food and Drug Administration on January 31st. That letter indicated that it was likely the FDA would deny approval until the firm was able to conduct a new clinical trial evaluating cardiovascular risks of its Contrave weight loss pill. Orexigen said the move would help it reduec cash expeditures, saving it approximately $5.0M annually.