There Is No Fat Pill

The FDA rejected Orexigen's (ticker: OREX) diet drug Contrave today - due to heart attack concerns. The company had all its hopes riding on this drug and predictably the stock got spanked. Ok more like destroyed on the news. Lots of investors buy these drug companies that look to have "promising" obesity drugs. The company that hits this home run is expected to make BILLIONs of dollars. Abbot Labs had Meridia, but it pulled the drug after it too had heart attack issues.

"I can accept a little heart attack if I can fit into my skinny jeans"

The rejection was a surprise because the FDA's outside advisory panel voted 13-7 in favor of it. That positive sign got shareholders excited. The FDA said it wants another study. Orexigen says it doesn't have the money to do the study the FDA wants.

Here's the thing - there is no such thing as a fat pill. The only thing that gets rid of fat is a low calorie diet and exercise. There are no fat pills on the Biggest Loser, just hours and hours of brutal exercise. But that doesn't stop the drug companies from trying to sell these pills. Vivus and and Arena Pharmaceuticals both plan to reintroduce their fat pills to the FDA after being rejected last year.

Once again - there is no such thing as a fat pill to get rid of obesity. If you hear about a drug company selling such a thing - snicker. Pat yourself  on the back for knowing better and click the buy order for a different stock.