Orexigen Therapeutics, Inc. (OREX) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $47.66 million, or $ 1.12 a share in the quarter, against a net loss of $11.14 million, or $0.86 a share in the last year period. On an adjusted basis, net loss for the quarter was $30.16 million, when compared with $11.14 million in the last year period.
Revenue during the quarter dropped 29.80 percent to $7 million from $9.97 million in the previous year period.
Operating income for the quarter was $42.53 million, compared with an operating loss of $10.95 million in the previous year period.
"In the third quarter, we completed the acquisition of U.S. rights to Contrave® and in August began marketing Contrave independently with our own field representatives," said Mike Narachi, CEO of Orexigen. "In the U.S. and with our partnerships abroad, our mission is to help improve the health and lives of patients struggling to lose weight. We continue to expect our business to become profitable beginning in full year 2019 without the need for additional capital."
Working capital decreases marginally
Orexigen Therapeutics, Inc. has witnessed a decline in the working capital over the last year. It stood at $207.71 million as at Sep. 30, 2016, down 4.02 percent or $8.69 million from $216.40 million on Sep. 30, 2015. Current ratio was at 4.17 as on Sep. 30, 2016, down from 7.10 on Sep. 30, 2015.
Days sales outstanding went up to 58 days for the quarter compared with 52 days for the same period last year.
Debt increases substantially
Orexigen Therapeutics, Inc. has witnessed an increase in total debt over the last one year. It stood at $200.92 million as on Sep. 30, 2016, up 130.83 percent or $113.88 million from $87.04 million on Sep. 30, 2015. Orexigen Therapeutics has witnessed an increase in long-term debt over the last one year. It stood at $200.92 million as on Sep. 30, 2016, up 130.83 percent or $113.88 million from $87.04 million on Sep. 30, 2015. Total debt was 56.47 percent of total assets as on Sep. 30, 2016, compared with 34.22 percent on Sep. 30, 2015. Debt to equity ratio was at 2.74 as on Sep. 30, 2016, up from 1.88 as on Sep. 30, 2015.
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