Obesity Companies Prolong The Inevitable As Cash Runs Out
Arena and Vivus both announce efforts to conserve cash and they struggle with virtually nonexistent sales of their obesity drugs. Neither company has laid out plans for next steps.
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Earnings season continues with reports from a swath of small biotechs. Ironwood reports higher Linzess sales, Incyte makes a European acquisition, Arena continues its decline, and Ariad explores strategic options.
Obesity is one of the most prevalent diseases in the US, according to CDC, which estimates that about one-third of Americans, or 76 million adults, are obese. Obesity leads to other chronic conditions like diabetes, heart disease and some cancers. Yet, patients and physicians have been slow to turn to drugs for treatment.
After two years of almost nonexistent sales, analysts are ringing the death knell for the obesity market as revenues of once-promising obesity drugs continue to decline. The expectation is that virtually all of the major marketing partners will exit their respective partnerships in the near-term and more than one player could run out of cash.