final orex 1 q16 deck 5 4 16 final

For investor purposes only

Orexigen First Quarter 2016

Earnings Conference Call

May 4th 2016


Forward Looking Statements

This presentation contains forward-looking statements about Orexigen Therapeutics, Inc. and Contrave®. Words such as “believes,” “anticipates,”

“plans,” “expects,” “indicates,” “will,” “should,” “intends,” “potential,” “suggests,” “assuming,” “designed” and similar expressions are intended to identify

forward‐looking statements. These statements are based on the Company‘s current beliefs and expectations. These forward‐looking statements include

statements regarding: the potential for greater profitability and shareholder value through the sole ownership of U.S. rights to commercialize Contrave®

in the United States; the potential success of marketing and commercialization of Contrave in the United States; the potential for Contrave and

Mysimba® to achieve commercial success globally; the potential for Orexigen to enter into successful partnership arrangements for Contrave/Mysimba

in additional territories outside the United States; the potential growth of the anti-obesity market through 2018 and the potential growth of Orexigen’s

share of such market through 2018; the potential improvement in profitability per Contrave prescription by 2018; the potential for the Company to be

profitable by 2019; the potential for Orexigen to achieve commercial success for Contrave in the United States without a partner; the potential for

Contrave to achieve the prescription and profitability models in 2017 and 2018; the sales force capacity for Contrave; the Company’s strategic plans

and initiatives; and the potential to maintain and strengthen the intellectual property protection for Contrave/Mysimba globally. The inclusion of financial

modeling, forward‐looking statements and potential financing and transaction plans and terms should not be regarded as a representation by Orexigen

that any of its plans will be achieved. Actual results may differ materially from those expressed or implied in this presentation due to the risk and

uncertainties inherent in the Orexigen business, including, without limitation: our ability to successfully and timely transition the commercialization and

development responsibilities for Contrave from Takeda to the Company; the potential that the marketing and commercialization of Contrave/Mysimba

will not be successful, particularly, with respect to Contrave, in the U.S. following the transition from Takeda; the Company’s ability to obtain

partnerships and marketing authorization globally; additional analysis of the interim results or the final data from the terminated Light Study, including

safety-related data, and the additional CVOT may produce negative or inconclusive results, or may be inconsistent with the conclusion that the interim

analysis was successful; our ability to adequately inform consumers about Contrave; our ability to successfully commercialize Contrave with a specialty

sales force in the United States; the therapeutic and commercial value of Contrave/Mysimba; competition in the global obesity market, particularly from

existing therapies; the Company’s failure to successfully acquire, develop and market additional product candidates or approved products; the

estimates of the capacity of manufacturing and the company’s ability to secure additional manufacturing capabilities; our ability to obtain and maintain

global intellectual property protection for Contrave and Mysimba; legal or regulatory proceedings against Orexigen, as well as potential reputational

harm, as a result of misleading public claims about Orexigen; our ability to maintain sufficient capital to fund our operations for the foreseeable future;

the potential for a Delaware court to determine that one or more of the patents are not valid or that Actavis' proposed generic product is not infringing

each of the patents at issue; and other risks described in Orexigen’s filings with the Securities and Exchange Commission. You are cautioned not to

place undue reliance on these forward‐looking statements, which speak only as of the date hereof, and Orexigen undertakes no obligation to revise or

update this news release to reflect events or circumstances after the date hereof. Further information regarding these and other risks is included under

the heading "Risk Factors" in Orexigen's Current Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2016 and

its other reports, which are available from the SEC's website (www.sec.gov) and on Orexigen's website (www.orexigen.com) under the heading

"Investors." All forward‐looking statements are qualified in their entirety by this cautionary statement. This caution is made under the safe harbor

provisions of Section 21E of the Private Securities Litigation Reform Act of 1995.

2


Indicated for use as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kg/m2 or greater (obese), or 27 kg/m2 or greater (overweight) in the presence of at least one weight-related comorbid condition. Approved with the brand name Contrave® in the United States and Mysimba® in the European Union.

WARNING: SUICIDAL THOUGHTS AND BEHAVIORS; AND

NEUROPSYCHIATRIC REACTIONS

Suicidality and Antidepressant Drugs

Not approved for use in the treatment of major depressive disorder or

other psychiatric disorders. Contains bupropion, the same active

ingredient as some other antidepressant medications (including, but not

limited to, WELLBUTRIN, WELLBUTRIN SR, WELLBUTRIN XL, and

APLENZIN). Antidepressants increased the risk of suicidal thoughts and

behavior in children, adolescents, and young adults in short-term trials.

These trials did not show an increase in the risk of suicidal thoughts and

behavior with antidepressant use in subjects over age 24; there was a

reduction in risk with antidepressant use in subjects aged 65 and older.

In patients of all ages, monitor closely for worsening, and for the

emergence of suicidal thoughts and behaviors. Advise families and

caregivers of the need for close observation and communication with the

prescriber. Not approved for use in pediatric patients.

Neuropsychiatric Reactions in Patients Taking Bupropion for Smoking

Cessation

Serious neuropsychiatric reactions have occurred in patients taking

bupropion for smoking cessation. The majority of these reactions

occurred during bupropion treatment, but some occurred in the context

of discontinuing treatment. In many cases, a causal relationship to

bupropion treatment is not certain, because depressed mood may be a

symptom of nicotine withdrawal. However, some of the cases occurred

in patients taking bupropion who continued to smoke. Although not

approved for smoking cessation, observe all patients for

neuropsychiatric reactions. Instruct the patient to contact a healthcare

provider if such reactions occur.

Full Prescribing Information, including Medication Guide, for Contrave is available at http://www.contrave.com/. The Mysimba summary of product characteristics is available at ema.europe.eu.

3

®

http://www.contrave.com/

http://www.ema.europa.eu/ema/index.jsp?curl=pages/medicines/human/medicin es/003687/human_med_001845.jsp&mid=WC0b01ac058001d124


Agenda

4

Mike Narachi, CEO

Overview of Recent Business Highlights

Dr. Tom Cannell, Executive VP and Chief Commercial Officer

U.S. Commercial Opportunity

Dr. Preston Klassen, Executive VP Global Development,

Overview of Postmarketing Development Programs

Jason Keyes, VP Finance

Q1 Financial Results & Guidance


Mike Narachi, CEO

Overview of Recent Business

Highlights


Orexigen is acquiring all U.S. rights to Contrave

Rare opportunity for non-competitive acquisition of most prescribed brand in a growing market at an ideal point in the product’s life cycle

Acquisition of U.S. rights significantly magnifies projected long-term profitability and opens multiple paths to shareholder value creation

U.S. commercialization of Contrave funded by sale of $165 million in convertible senior secured notes to investor syndicate led by The BaupostGroup L.L.C.

Orexigen believes that with this investment the company has sufficient capital to fund its US commercialization plan for Contrave and to achieve projected profitability for full year 2019

6

Acquisition of U.S. Contrave® (naltrexone HCl / bupropion HCl) rights transformational for Orexigen


Acquiring Contrave rights at this point in the product’s lifecycle is a tremendous opportunity

Takeda’s heavy investment in the launch yielded a great starting point for Orexigen

– 100,000 HCP’s have been called on to date, 1.1 million details delivered

– Many well trained speakers delivered hundreds of speaker programs to 25,000 program attendees

– Over 62,000 unique Contrave prescribers, 942,977 prescriptions filled

– High levels of aided and unaided awareness of Contrave

– Contrave is the leading national branded weight loss medicine

Highly valuable information from real market data is available to guide the next phase of commercialization

– Adoption patterns, promotion response, customer buying process, micro-segmenting, price-demand elasticity

7


Valeant commercialization and distributorship agreement for Central and Eastern Europe

Terms of the agreement

Valeant to commercialize and distribute Mysimba® in 19 Central and Eastern European countries

Orexigen to sell Valeant Mysimbatablets at agreed transfer price

Anticipate Q3 2016 commercial launch in five (of 19 partnered) countries

– Valeant placed their first firm order for Mysimba tablets

Agreement is with Orexigen Therapeutics Ireland Limited

8


Kwang Dong Distributorship Agreement is example of Orexigen’s preferred ROW partnership strategy

Terms of the agreement

Kwang Dong is responsible for obtaining regulatory approval and for all commercialization activities and expenses in South Korea

Orexigen will supply Contrave tablets to Kwang Dong for a $7 million upfront payment, approximately 35 – 40% of net sales, potential sales-based milestone payments, and other fees

Regulatory approval obtained in April 2016

– In anticipation of a commercial launch this quarter, Orexigen has shipped an initial order of Contrave tablets to Kwang Dong

– This shipment and a subsequent firm order for later in 2016 have a combined value to Orexigen of approximately $5.9 million

Agreement is with Orexigen Therapeutics Ireland Limited

9


Broad and Growing Patent Estate

2034

2031

2032

2029

2027

2027/29

2024

2024/25

Binge Eating (methods)

Major Depression (methods)

Visceral Fat (methods)

Titration (methods)

Tri-layer tablet (methods & compositions)

Insulin Sensitivity (methods & compositions)

Weber / Cowley (methods & compositions)

Pending Issued in some territories, pending in others

2030Nal SR Dissolution Profile (methods & compositions)

Dates reflect US patent expiration

Cardiovascular outcomes (methods)

Major Depression (methods)

10

2031Food Effect (methods)


Dr. Tom Cannell, Executive VP and Chief

Commercial Officer

U.S. Commercial Opportunity


600

700

800

900

1,000

1,100

1,200

1,300

Jan2014

Apr2014

Jul2014

Oct2014

Jan2015

Apr2015

Jul2015

Oct2015

Jan2016

Apr2016

Jul2016

Oct2016

Jan2017

Apr2017

Jul2017

Oct2017

Jan2018

Apr2018

Jul2018

Oct2018

TR

xs

Th

ou

sa

nd

s

Optimistic Pessimistic History

Source: IMS Monthly NPA; Orexigen estimates.Note: Anti-obesity products considered included Contrave®, Belviq®, Qysmia®, Saxenda®, Orlistat®, Phentermines and other generics in the ATC3 A08A market.

Anti-obesity market TRx forecast

+4%

+4%

2015 2016 2017 20182014

+10%9.4M

+12%

10.5M

+10%11.5M

10.8M

+10%12.6M

+4%11.4M

+10%13.9M

11.8M

We project 4-10% overall market growth

Upper Bound of Range Lower Bound of Range Historical

12


0%

2%

4%

6%

8%

10%

12%

14%

16%

Oct2014

Dec2014

Feb2015

Apr2015

Jun2015

Aug2015

Oct2015

Dec2015

Feb2016

Apr2016

Jun2016

Aug2016

Oct2016

Dec2016

Feb2017

Apr2017

Jun2017

Aug2017

Oct2017

Dec2017

Feb2018

Apr2018

Jun2018

Aug2018

Oct2018

Dec2018

TR

x S

ha

re


13

0.4%

6.4%7.3%

7.2%

8.7%

7.6%

11.0%

10.0%

Source: IMS Monthly NPA; Orexigen estimates

2015 2016 2017 20182014

Contrave share forecast

We project 10-11% share by 2018



0

20

40

60

80

100

120

140

160

Oct2014

Dec2014

Feb2015

Apr2015

Jun2015

Aug2015

Oct2015

Dec2015

Feb2016

Apr2016

Jun2016

Aug2016

Oct2016

Dec2016

Feb2017

Apr2017

Jun2017

Aug2017

Oct2017

Dec2017

Feb2018

Apr2018

Jun2018

Aug2018

Oct2018

Dec2018

TR

xs

Th

ou

sa

nd

s


14Source: IMS Monthly NPA; Orexigen estimatesNote: Values rounded.

Contrave TRx forecast

+25%

+33%

+39%

+20%

+19%

+21%830K

780K

1,110K

870K

1,540K

1,190K

Contrave TRx scenarios driven by market and share assumptions

2015 2016 2017 20182014


665k


U.S. Commercial Summary

15

Launch an effective and efficient U.S. commercial organization

1 Achieve strong growth of Contrave by differentiating versus generic amphetamines

2

Ex

ecu

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ex

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lle

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Improve G:N ratio through appropriate discount and pricing strategies

3

Inn

ova

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n Activate patients to drive proactive requests for new anti-obesity medicines

4 Leverage behavior modification to improve persistency and compliance

5 Drive reimbursement upside through innovative contracting strategies

6

Sources of Opportunity (Represent significant upside above guidance range)

Path to Profitability (Core strategies designed to drive guidance range)


Product lifecycles follow predictable phases

16

Sale

s

Time

Launch

Growth

Maintain

Maximize Profit


1


Case Study – Proscar (finasteride): Transition from a primary care sales force to a specialist organization

17

0

50

100

150

200

250

300

350

400

0

500

1,000

1,500

2,000

2,500

3,000

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004

De

tail

s (

in 0

00

’s)

Pro

sca

rT

Rx

(in

00

0’s

)

TRx

DetailsAvg. 5.2

min/detail

Avg. 8.5

min/ detail

Relaunch

Sources: TRx - IMS Health Launch MVPDetails and Minutes - Encuity Research, Based on research panel using actual reported numbers. Established data collection since 1989 for the collection of reported interactions. Average minutes per detail based on total reported minutes divided per total reported detailsNote: Proscar launched 6/1992, LOE: 6/2006

63% increase

minutes/detail


1

Primary Care Specialty


We project a significant increase in time and quality with the right 18,000 physicians

18

Primary Care Sales Force

Dedicated SpecialtySales Force

Product discussions shared with 2-3 other products in portfolio

Single product discussions

Time Spent on Contrave

Source: Orexigen EstimatesNote: Estimated capacity allocation based on 2016 Contrave Co-Promo PDE commitments.


1

35% of 600K PDEs Estimated Capacity

Product Discussions

+7%

210,000224,000

Significant increase

in min/detail


Orexigen Commercial Leadership Team

19

Thomas Cannell

Executive Vice President

Chief Commercial Officer

2014 – 2015: Head, Global Human Health Operating Model

2012 – 2014: President & Managing Director, Canada

2010 – 2012: Chief Marketing Officer & Chief Strategy Officer, Japan

2008 – 2010: Senior Vice President, Head of U.S. Commercial Model

2006 – 2008: Senior Vice President and General Manager

2003 – 2006: Vice President, Sales

2001 – 2003: Executive Director, Marketing

1998 – 2001: National Sales Director

1994 – 1996: Regional Sales Director

1992 – 1994: Product Manager

1989 – 1992: Progressive Roles in Market Research & Strategic Planning

1987 – 1989: Sales Representative

Elizabeth Eastland

Vice President

Sales

2015 – 2016: Regional Business Leader

2012 – 2015: Executive Director, Marketing & Global Operations Roles

2008 – 2012: Director, Commercial Operations

2007 – 2008: Senior Director, Strategic Planning, New Commercial Model

2003 – 2007: Progressive U.S. Regional Sales Roles

1996 – 2003: Progressive Primary Care, Specialty & Managed Markets Roles

1989 – 1996: Progressive Marketing, Sales, and Communications Roles

Robert Griffing

Senior Vice President

Global Marketing

2013 – 2015: Vice President, Global Sale & Marketing

2012 – 2013: Vice President, Commercial Operations

2010 – 2012: National Sales Leader

2007 – 2010: Global Brand Leader

2005 – 2007: Senior Director, New Products

2003 – 2005: Senior Regional Business Director

1998 – 2003: Progressive Specialty & Primary Care Marketing Roles

1990 – 1998: Progressive Primary Care & Hospital Sales Roles

Brian Longstreet


Global Market Access and Development

2012 – 2016: Managing Director, MSD Ireland & Global Health Innovation Investment Fund


2009 – 2010: Vice President, Managed Markets & Policy

2008 – 2009: Vice President, U.S. Managed Markets – Healthcare Systems

2005 – 2008: Executive Director, U.S. Managed Markets

2001 – 2005: Progressive U.S. Marketing Roles

1999 – 2001: Business Unit Director, United Kingdom

1989 – 1999: Progressive Specialty & Primary Care Sales and Managed Market Roles

Robert Yoder


Global Commercial Operations

2014 – 2015: Vice President, US Sales Operations


2010 – 2013: Executive Director, Global Business Operations

2008 – 2010: Senior Director, National Business Planning

2007 – 2008: Senior Director, Field Operations & Implementation

2005 - 2007: Senior Region Director, Specialty and Hospital Sales

2000 – 2005: Director, Regional Business Planning

1987 – 2000: Progressive Sales and Sales Support Roles


1


15 Regional Sales Managers Hired

20Note: 1. Hiring of Regional Sales Managers is in the final stages; 2. Aggregate experience is over 300 years in sales across 15 RSMs.


1

21 average years of experience2


Leveraging Strategic Commercial Partners inVentiv Health

21


1

Sourcing,Recruiting &

Training

Sales Ops Support

CRM & Commercial

Systems

Fleet, Field Logistics

Hardware & Helpdesk

Commercial Call Center

• Experience: Previous experience with Orexigen leadership

• Small Pharma Support: Flexible with ability to work through unique needs of small pharma

• Proven Record: Proven track record and implementation experience

• Speed: Ability to move and build quickly as well as toggle to meet market needs

• Infrastructure: Leverage their existing commercial support framework

Advantages of Partnership Services Provided

For investor purposes only 22

Critical Path for U.S. Commercialization


1

Jan Feb Mar Apr May Jun Jul Aug Sep Oct

Rep

Cust

om

er

Faci

ng

Key E

nable

rsFoundation S

erv

ices

H.S.AH.S.A in Field | KOL Management

MCM

Gross2Net

Patient Education

Brand Strategy

B-MOD

Med Service

Supply Chain

Managed Markets

Pricing, HECON

Med Ed | Speaker Program

Quality

Strategy Sr Director interview

H.S.A Maps & Recruiting Cities

H.S.A Recruiting

H.S.A. Onboarding

H.S.A. Interviews Job Offers

Sr DrHired

SFSS Mgr Recruiting MgrInterviews

Rep Recruiting Cities

MgrHired Interviews Job Offers

KOL Lists

Rep in FieldRepOnboarding

Regulatory

MapsTargets

VP Interview

StrategyData Purchase MCM Plan

Acct Strategy

National Tiering MCM Tactics Call Center Build HCP TieringCall Center Live Tactics Phase II

Savings CardMarket Research

UnbrandedAgency RFP

Strategy

CTM Plan3PL RFP

State LicensePlanTrade Plan

NDA|IND Transferred to OREX

Speaker Bureau Selection

Speaker Selection & contracting

Speaker Training Programs Live

Market Research

3PL Selection

Distributor Contracts (Top 4)

Product at 3PL 1st

Shipment

Distributor Contracts (Others)

Regulatory Plan

MLR Committee

Rep Recruiting

AE Onboarding

Acct Transition

AERecruiting

1st Orex Labeled Product

Market Research Results HCP Phase II PlanPatientRFP

Launch Resource Plan

AOR RFP Patient Ed Plan

VP Hired

Nat’l Ad Board

Speaker Notification of TransitionMed Ed Strategy

PMR Requirements to FDA

PDAR Safety ReportPDAR SafetyReport

Speaker BureauRFP

Med Ed Policies

BrandPosition & Messaging

AORBranded MaterialsUnbranded Mtls

PDAR Quarterly Safety Report

1st OPDP Promo Mtl Submission

Contracts Transitioned

GMP Internal Audit

EDMS Go Live

Product Recall Vendor

Medical Call Center (MCC) Vendor

Selected

MCC Kick Off

MCC | PV LiveMed Info Processing

Safety DB Vendor Selected Medical/Safety

SOPs

BMOD Program

Patient Ed CampaignAOR Selection

Product Complaint Receipt & Processing

2017 Pricing Strategy

PRE-CLOSE TRANSITION RELAUNCH

Prepared for a

3Q Relaunch


Our engagement strategy will span multiple channels with commensurate level of investment per HCP

23

Targeted E-mail

Speaker Programs

Online Samples

Digital Campaign

Non-target Prescribers(~163,000)

Primary Targets(~18,000)

KOLs(~200)

• Account follow up as directed by field

• Coverage of vacancies

• Outbound calls & prospecting

• MCM programs and Digital campaigns

• Speaker programs• Community of practice

KOL influence• On-line sample access• Attendance at society

meetings

• Speaker support• Account follow up as

directed by field

• Engages key leaders in support of shared objectives

• Exhibits and society meeting participation

Field Sales Reps

Health Science Associates

Personal Promotion

MCM/Call CenterProfessional

Relations

Incre

asin

g in

ve

stm

en

t p

er

HC

P e

ng

ag

em

en

t

MCM Targets(~20,000)

Increasing call frequency

Tier 1

Tier 2

Tier 3

Non-personal Only1

Note: 1. Non-personal programs will overlap and may also cover Primary Targets


1


MCM Strategy

24

~20,000 MCM Targets

Benefits Realized

Increased HCP-specific engagement

Increased Contrave Prescriptions

Increased conversion to primary targets

Low initial investment with risk-sharing

Pre-existing relationships with HCPs

Access and expertise with various media

Proprietary engagement tools

MCM Contrave brand team

Our partner will use their existing network and platforms to increase the credibility of Contrave among target HCPs and drive use


1

Partner Attributes

• Digital campaigns• E-campaigns• Personalized portals• Speaker programs• Online samples



25



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Activate patients to drive proactive requests for new anti-obesity medicines



6

Potential Upsides

Path to Profitability


Hypothalamus and Reward System

HypothalamusAppetite Regulatory Center

• Body temperature

• Thirst

• Sleep

• Hunger

Mesolimbic Dopamine CircuitReward System

• Opioid addiction / dependence

• Alcohol abuse / dependence

• Nicotine addiction / dependence

• Food cravings

Nonclinical studies suggest that naltrexone and bupropion have effects on two separate areas of the brain involved in the regulation of food intake: the hypothalamus (appetite regulatory center) and the mesolimbic dopamine circuit (reward system). The exact neurochemical effects of CONTRAVE® leading to weight loss are not fully understood.1

Source: 1. Contrave Package Insert.Note: For illustrative purposes only.

Contrave Prescribing Information

Achieve strong growth of Contrave by differentiating versus generic phentermines

2


Product attributes in the PIs may provide a key source of differentiation

27

The efficacy and safety of Contrave and phentermine have not been evaluated in a head-to-head clinical study.Source: 1. FDA Package Inserts for Contrave and phentermine; 2. U.S. Department of Health and Human Services, Center for Substance Abuse Treatment, Treatment Improvement Protocol Series 37 (2008); 3. U.S. Department of Justice, Drug Enforcement AdministrationOrange Book (February 2016); 4. Table adapted from the Drug Enforcement Agency (Drug Scheduling). Please see the PI for the complete indication.


2

Contrave• Indicated as an adjunct to a reduced

calorie diet and increased physical activity for chronic weight management

Phentermine• A sympathomimetic amine anorectic

indicated as a short-term adjunct (a few weeks) in a regimen of weight reduction

Weight Loss Adjunct Therapy

Contrave• Affects two separate areas of the

brain involved in the regulation of food intake (hypothalamus and reward system) based on nonclinical studies

Phentermine• Not established as a appetite

suppressant as other CNS or metabolic effects may be involved

Obesity Mechanism of Action

Contrave• Components not classified as

Schedule I to IV drugs

Phentermine• Related chemically and

pharmalogically to amphetamine and other stimulant drugs that have been extensively abused; a schedule IV substance1,2

Drug Class

No Medical Use Medical Use

Lack of accepted safety under

medical supervision

Schedule I Schedule II Schedule III Schedule IV Schedule V

HeroinLSD

OxycodoneHydromorphoneCocaineMethamphetamine

Opioids (Codeine combinations)KetamineAnabolic Steroids

DiazepamPhentermineFlenfluramineNiravam

Opioids (in limited quantities)DifenoxinPregabalinLacosamide

Psychological or Physical Dependence


OOP for patients with 3rd party coverage

28


2

Commercial Pay

Phentermine $241

Contrave® $301,2

Belviq®* $503

Qysimia®* $603

Note: *All Belviq and Qsymia patients eligible for free trial (15 and 14 days respectively); 1. Average patient cost; 2. Effective April 29, 2016; 3. Monthly cost illustration based on current CVS retail price as of January 2016.



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Potential Upsides



G:N Discount Expected to Improve to 40-45% by 2018

30

Estimated Revenue Captured Estimated Discount

Cash Pay

Commercial Pay

1Q2016 2H2016 (proj.) 2017 (proj.)

Wit

h S

avin

gs C

ard

Wit

ho

ut

Sa

vin

gs

Ca

rd

Cash Pay

Commercial Pay

70% 64% 62%

7% 9% 10%

9% 11% 12%

14% 16% 16%

% Estimated Patient Mix by Segment by Year


3

2018 (proj.)

60%

11%

14%

15%

Source: Orexigen estimates



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Potential Upsides



112.3M Addressable market1

We focus on high value motivated, help-seeking, and committed patients to enable their weight loss journey

32

Patients are seen as motivated when they recognize that they are overweight and want to lose weight

46.1M Motivated patients

20.6M Motivated &

Help-seeking patients

14.1M Motivated, Help-

seeking, & Committed

patients

Motivated

Patients are seen as help-seeking when they visit a HCP specifically for weight

Motivated & Help-seeking

Motivated, Help-seeking, & Committed

Patients are seen as committed when they have tried diet and exercise

Note: 1. This consists of Orexigen models driven by people in the United States who have a BMI greater than 30 or a BMI between 27 and 30 who have at least one weight-related comorbidity based on WHO data.


4


Patient insight: two separate areas of the brain are involved in the regulation of food intake

33

Objective: encourage patients to ask their doctor about new Rx medicines

that might be right for them

hypothalamus (appetite regulatory center)

mesolimbic dopamine circuit (reward system)


4



4

Early DTC Concepts – example of creative going to first round of market research

WIP



35

Launch an effective and efficient U.S. commercial organization for Contrave


2

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Potential Upsides



Complementary approach to behavior modification strategy will foster sustainable weight loss while improving persistency and compliance

36

Key Criteria for an Optimal BMOD Program

Exercise

BMOD

Diet

• Simple, easy to follow plan with individualized solutions

• Builds skills that lead to lifetime behavior changes

• Fosters personal accountability

• Significant short and long-term weight loss

• Helps patients maintain their diet and increase physical

activity to maintain weight loss

• Nutritional tips and diet to allow the patient to remain full

and avoid cravings (e.g., competency in making appropriate

food choices)

• Strategies for addressing real-world social challenges

• Coaches that motivate and support the patient through the

journey and strengthen the skills needed to lose weight

• Proven lifestyle-change techniques and supported by clinical

studies

Leverage behavior modification to improve persistency and compliance

5



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Potential Upsides



Evolving U.S. Managed Markets Contracting Strategies will maximize access and drive profitable demand

38

Phase II

Two-phase approach to maximize access & reimbursement within U.S. Managed Markets

• Gain/Maintain parity with other branded agents

• Focus on open access and typically Tier 3 coverage

• Opportunistically target opportunities in an evolving marketplace

• Leverage branded-leader status to strive for low branded co-pay status and broader reimbursement

• Develop and implement more innovative contracting approaches including partnering (HECON, risk-sharing, adherence/persistency initiatives)

• Increased emphasis on other Customer segments (employers, specialty clinics & pharmacies, and integrated delivery network, etc.)

Phase I Phase II

Develop a customized solution for each payer

Drive reimbursement upside through innovative contracting strategies

6


24.6%

41.6%

25.1%

8.6%

0.0%

10.0%

20.0%

30.0%

40.0%

50.0%

Bra

nd

ed

Ma

rke

t S

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Branded share dominance is a platform for future success

39

Contrave

Belviq

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Saxenda

Branded Anti-obesity Market – Weekly Share

Source: IMS Weekly NPA (Week Ending: April 15, 2016).

Drive reimbursement upside through innovative contracting strategies

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Potential Upsides



Dr. Preston Klassen, Executive VP

Global Development

Overview of Postmarketing

Development Programs


Managing all Postmarketing Development Program Requirements to FDA Final Report Study Deadlines

42

PMR 2017 2018 2019 2020 2021 2022 2024

DDI x

Juvenile Tox x

TQT x

Renal PK x

BE – Pediatric Formulation x

Hepatic PK x

Pediatric Phase III (Adolescents) x

Adolescent PK x

Drug Utilization x

Observational Database x

CVOT-2 x

Pediatric PK (Children) x

Pediatric Phase III (Children) x


Jason Keyes, VP Finance

Q1 Financial Results & Guidance


First Quarter 2016 Financial Results

44

Revenue of $5.0 million, including $2.6 million in royalties on net sales of Contrave and $2.4 million in collaborative income

Total operating expenses for the first quarter of 2016 were $28.4 million compared to $19.8 million for the first quarter of 2015

$233.1 million in cash, cash equivalents, restricted cash, and an additional $59.1 million in marketable securities, for a total of $292.2 million, as of March 31, 2016


Path to Profitability: Growing US and OUS gross profits expected to exceed operating expenses in full year 2019

45

Global gross profit expected to exceed $180 – 200M operating expenses by 2019

US gross profit of $140 – 230M

US Contrave net sales of $160 – 260M

OUS gross profit potential > $40M with expected launches

Kwang Dong to launch in South Korea 2Q 2016

Valeant expected to launch in Central and Eastern Europe in 3Q 2016

Additional OUS partnerships expected in 2016 and 2017: other EU countries, Mexico, Australia, Canada, Middle East and North Africa, Brazil

Gross Profit Expenses Total annual cash operating expenses of $180

– 200M in years 2017 - 2019

Sales & Marketing costs $80 – 100M per year

$35 – 45M in total marketing spend including potential DTC

External R&D costs for postmarketing studies

2016 – 2017: $15 – 20M per year

2018 – 2021: $50M average per year, driven by the CVOT

R&D costs significantly decrease after 2021

Balance of expenses associated with global manufacturing & supply chain, quality, regulatory affairs & safety, and administration

Expected to decline over time

>

final orex 1 q16 deck 5 4 16 final

Health & Medicine