Orexigen Therapeutics (NASDAQ:OREX) ticked up more than 24% early Thursday on news that it has entered into a partnership with Japan’s Takeda Pharmaceutical to commercialize a drug used to treat obesity.
The San Diego company submitted a New Drug Application to the US Food and Drug Administration for Contrave on March 31.
Contrave is Orexigen’s investigational drug for the treatment of obesity in the United States, Canada and Mexico.
The drug is believed to address both the biological and behavioral drivers of the disease, which affects some 75 million Americans.
“Takeda is an ideal partner for Contrave given its proven track record in commercializing innovative medicines and its commitment to the treatment of obesity,” said Orexigen CEO Michael Narachi. “We believe this is a great strategic partnership to enable our goal of a strong market entry for Contrave, if approved.”
Under the terms of the agreement, the two companies will work together on ongoing development of the product, with Orexigen leading pre-approval activities and Takeda taking the post-approval.
“Takeda has deep experience in providing important medicines to treat chronic disease and Contrave will help us provide a full spectrum of treatment to patients for the management of obesity,” said Takeda CEO Shinji Honda.
The parties will share the costs of any future development of the drug.