Partner Fund Management Ups Stake in Orexigen Therapeutics, Inc. (OREX)

Christopher Medlock James, San Francisco-based, hedge fund Partner Fund Management has raised its position in Orexigen Therapeutics, Inc. (NASDAQ:OREX), a new filing with the SEC showed. Partner increased the stake to a total of almost 5.3 million shares, from 3.6 million shares owned at the end of September and disclosed in the latest 13F. The holding is passive by nature and amasses 5.2% of the company’s common stock.

Partner Fund Management was founded in 2004 and has an estimated $5 billion in assets under management (AUM).

Orexigen Therapeutics, Inc. is into developing and commercializing drug treatment for obesity and related disorders. The drugs treatments seek to reduce and sustain weight loss by diminishing appetite, enhancing satiety and improving energy utilization. Recently, the company has resubmitted a new drug application to the U.S. Food and Drug Administration for Contrave. This was on the basis of encouraging summary report by the independent Data Monitoring Committee on the Light Study. Orexigen Therapeutics Inc. (NASDAQ:OREX) expects the FDA to come out with its decision by June 2014. There is a huge potential for such a drug with 33% of the current U.S.’s population classified as obese apart from other 33% classified as overweight. The insurance sector is also covering anti-obesity prescriptions. Currently about 40% of covered lives have an anti-obesity benefit, this is expected to rise to 50% by mid next year.

Partner Fund Management managed by Christopher Medlock James has the highest holding in the company followed by DEShaw managed by D. E. Shaw with 1.40 million shares worth $8.60 million at the end of the third quarter. Citadel Investment Group, run by Ken Griffin also holds a long position in Orexigen Therapeutics Inc. (NASDAQ:OREX) at the end of the quarter ending September, 2013. The fund had almost 1.35 million shares worth $8.26 million.

Disclosure: none

Recommended Reading:

Citadel Investment Group Increases Holding in Trulia Inc (TRLA) to 6.5%

Corvex Signs Agreement with Soroban Capital Partners Regarding Williams Companies, Inc. (WMB)

David Blood, Al Gore’s Generation Ups Stake in Waters Corporation (WAT)