Vivus (VVUS) Sales Flat But Opportunities Abound, RBC Capital Says

RBC Capital maintains an Outperform rating on Vivus (NASDAQ: VVUS) with the price target set at $6 following Q1 results which showed flat Qsymia sales. Vivus is also looking to expand into additional indications. Vivus plans to conduct phase III trials of Qsymia in obstructive sleep apnea after flat sales for the last three quarters. Although no definite timelines were provided. Vivus also appears to be close to a partnership with LatAm for avanafil.

RBC Capital Markets analyst Simos Simeonidis thinks that the LatAm partnership is near, saying, "Stendra officially changed hands after Endo acquired Auxilium in January 2015. Consequently, VVUS recognized a loss of $0.5M in net royalty revenue for 1Q, due to a recorded $1.2M change in estimate made by Endo for "Stendra return reserve related to sales made in 2014". Vivus mentioned they have met with Endo leadership and are encouraged by their plans for the remainder of 2015. VVUS mentioned on the call it "looks forward to finalizing an alliance for Latin America in the near term", to add to their other ex-US Stendra partners, Menarini and Sanofi."

For an analyst ratings summary and ratings history on Vivus click here. For more ratings news on Vivus click here.

Shares of Vivus closed at $2.36 yesterday.

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