Sanofi Aventis (SNY): Acomplia

My roommate Colleen mentioned that drug companies are looking at the CB1 receptor, aka the cannabinoid (think marijuana) receptor to help develop a drug that will curb appetite and therefore treat obesity-releated disorders.

Think about it like this. When people smoke marjiuana, they get a case of the "munchies" because the THC stimulates cannabinoid receptors, which somehow activate a pathway that upregulates hunger and taste. There has been some research done on mice that shows that blocking these receptors or removing them can actually decrease appetite (caution: I haven't read the research so I don't know how valid it is). Even in the absence of marijuana or THC, the body produces endogenous transmitters that stimulate the CB1 receptor.

SNY, Sanofi Aventis, is currently working on a drug called Acomplia (rimonabant) that blocks these CB1 receptors, causing a loss in appetite. If this drug is approved, it will be a huge billion-dollar blockbuster drug for SNY simply because of how severe of a problem obesity is in America. Americans are obsessed with slimming down without having to deal with diet or exercise. The drug's approval is currently in the air right now, with the FDA requiring that Acomplia meet additional conditions, and the management staying tight-lipped. There's supposed to be some more info released next week about the approval status, so keep it on your watchlist.

It's a bad idea to gamble on FDA rulings unless if you're a pro or if you're 'well-informed', but I just wanted to bring up this stock because I really like the chart technical analysis on SNY. It has a hot uptrend that is well-supported, and just from looking at the chart alone, it looks good as a buy and hold investment. I'm not sure how much Acomplia has already been priced into the stock, so do own your research on this one, because I honestly only spent 10 minutes on this.

DISCLAIMER: I do not have any positions in SNY.