A new diet pill was not approved by the Food and Drug Administration (FDA) which sent shares of the maker, Orexigen Therapeutics Inc. tumbling downhill.
Government officials asked for an additional study involving heart health and the weight loss drug, Contrave.
The drug is a mixture of an antidepressant and an anti-addiction formula to help decrease appetite for. Many analysts believe the drug has a lot of promise, but without the study, regulators will not approve it.
While Orexigen is unhappy with the ruling by the FDA, additional measures are being taken to determine what is next for the drug.
Government health officials do believe additional weight loss drugs are necessary, especially as obesity rates in the United States continue growing at alarming rates.
The largest issue for many weight loss drug manufacturers is getting the drug approved, however. Two separate drugs were rejected last year as they did not comply with safety regulations.
Some of the newer companies entering the weight loss drug industry are Vivus Inc. and Arena Pharmaceuticals Inc.
Analysts and investors are frustrated by the governmental ruling, but the safety of the public is the number one concern.