Orexigen Therapeutics (Nasdaq: OREX) lost 23 cents per share in the first quarter of 2014, wider than the year-ago loss of 21 cents and deeper than Wall Street expectations of a 20-cent loss.
The loss at the company, which specializes in treatments for obesity, was prompted by rising operating expenses despite relatively flat earnings.
Operating expenses increased to $24.0 million in first quarter of 2014 from $20.3 million during the similar period last year, mostly due to higher raw materials, inventory and manufacturing-related expenses, and salaries and personnel related costs. Research and development expenses rose 12 percent during the year to $17 million. Overhead expenses rose 37.5 percent to $7 million, but revenues remained flat at roughly $900,000.
Wall Street’s Zacks Research predicts the firm will show some improvements this year as it expects to gain $100 million in Takeda after the approval of its NB32 treatment with strong possibilities for foreign sales, but it also faces stiff competition from other obesity treatments.
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