VIVUS' (VVUS) Qsymia Approved and has Advantages Over Belviq
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Price: $14.50 +7.25%
Rating Summary:
6 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
Rating Summary:
6 Buy, 6 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 21 | Down: 24 | New: 29
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Late Tuesday, VIVUS, Inc. (Nasdaq: VVUS) announced FDA approval for its weight-management drug Qsymia. Shares have resumed trading markedly higher ahead of the bell Wednesday, amid the recent run-up in the stock.
Importantly, Qsymia will be on the market in the four quarter ahead of Arena's (Nasdaq: ARNA) rival drug Belviq.
Wall Street analysts were mostly positive on VIVUS following approval.
Cowen sees Qsymia having an advantage over peer Arena's Pharma's (Nasdaq: ARNA) Belviq. Between the two, Cowen is giving benefit to Qsymia, given its "considerably better" efficacy. The firm said, "Qsymia's safety will be an issue for some physicians, but Belviq's carcinogenicity and valvulopathy signals, no matter how faint, may cast a bigger shadow." That said "[given that] neither compound provides all the answers to most obese patients' needs," there will be many more who try to bridge gaps. The means there's more room for new entrants in the obesity drug segment.
Analysts at Brean Murray are positive as the approval came without harsh or unexpected restrictions. "We believe that the restrictions placed upon Qsymia use are on the favorably mild end of the spectrum," the said.
Jefferies' Thomas Wei, who was negative on the stock going into the decision, upgraded the shares from Underperform to Hold today and raised his price target from $9 to $31. He called in a "major win" for VIVUS. He said although some questions remain on commercial challenges, they are positive on the initial sales trajectory. The firm revised estimates to $3.6 bilion in peak sales by 2019 and a pharma partnership yielding a 35-40% royalty to VVUS.
Shares of VIVUS are up over 15 percent early, while Arena is down about 6.8 percent.
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Importantly, Qsymia will be on the market in the four quarter ahead of Arena's (Nasdaq: ARNA) rival drug Belviq.
Wall Street analysts were mostly positive on VIVUS following approval.
Cowen sees Qsymia having an advantage over peer Arena's Pharma's (Nasdaq: ARNA) Belviq. Between the two, Cowen is giving benefit to Qsymia, given its "considerably better" efficacy. The firm said, "Qsymia's safety will be an issue for some physicians, but Belviq's carcinogenicity and valvulopathy signals, no matter how faint, may cast a bigger shadow." That said "[given that] neither compound provides all the answers to most obese patients' needs," there will be many more who try to bridge gaps. The means there's more room for new entrants in the obesity drug segment.
Analysts at Brean Murray are positive as the approval came without harsh or unexpected restrictions. "We believe that the restrictions placed upon Qsymia use are on the favorably mild end of the spectrum," the said.
Jefferies' Thomas Wei, who was negative on the stock going into the decision, upgraded the shares from Underperform to Hold today and raised his price target from $9 to $31. He called in a "major win" for VIVUS. He said although some questions remain on commercial challenges, they are positive on the initial sales trajectory. The firm revised estimates to $3.6 bilion in peak sales by 2019 and a pharma partnership yielding a 35-40% royalty to VVUS.
Shares of VIVUS are up over 15 percent early, while Arena is down about 6.8 percent.
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