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Orexigen considering potential sale as it may not meet debt terms

Orexigen Therapeutics Inc. said in a SEC filing that it is evaluating whether it can continue as a "going concern," as it might not be able to meet its debt obligations due in 2018.

As part of steps the biotech company may take to meet "possible liquidity requirements," it is looking at getting additional funds, negotiating with note holders and trying to pursue talks for a sale or merger.

The company needs to be able to meet a term under its debt agreement that allows holders of its 0% convertible senior secured notes due 2020, to redeem their notes after June 30, 2018, if the company's total sales for fiscal 2017 drop below $100 million.

Orexigen expects total revenues for the third quarter of 2017 to be between about $18.1 million and $19.1 million.

Meanwhile, the company will continue to have market exclusivity for its lead product Contrave until 2030, after it recently prevailed in a patent litigation lawsuit against Actavis Laboratories FL Inc.