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Despite Slow Launch, Vivus's (VVUS) Qsymia Still Has Blockbuster Potential

January 4, 2013 3:25 PM EST Send to a Friend
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Price: $4.82 --0%

Rating Summary:
    4 Buy, 7 Hold, 5 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 0 | Down: 0 | New: 2
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Vivus (Nasdaq: VVUS) launched its highly anticipated weight loss drug Qsymia in the U.S. in Sept. By most accounts, the launch was a disappointment. Analysts at Needham and Company say the less than stellar launch is related to REMS issues, as management cautioned about FDA concerns, opting for a controlled launch. Despite this, analysts believe the drugs still has blockbuster potential.

"In our opinion, complications during the first few weeks of a launch do not preclude the drug from reaching blockbuster status," said analyst Alan Carr.

"In our view these matters can likely be corrected with additional physician education about the REMS procedures as well as expansion from mail-order to retail distribution, which we expect to occur in 2013," said Carr.

Accordingly, Carr feels Vivus stock is undervalued.

Needham & Company reiterated a Buy rating on Vivus with a price target of $20.00.

For an analyst ratings summary and ratings history on Vivus (Nasdaq: VVUS) click here. For more ratings news on Vivus click here.

Shares of Vivus closed at $13.01 yesterday.




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