VIVUS (VVUS) Weighed-Down by Negative Report
Tweet Send to a Friend
Get Alerts VVUS Hot Sheet
Trade VVUS Now!
Shares of VIVUS Inc. (Nasdaq: VVUS) had a belly-flop mid-day Thursday following a negative report at famed short-selling website Citron Research.
In the report, Citron notes that while the company now has FDA approval for its weigh loss drug Qsymia - it is "not a short path to riches." They cite the example 8 years ago when Nitromed received FDA approval, Wall Street was buzzing about the name and the stock was over $20 per share. Three years later the company sold for $0.80 per share.
Citron said despite the hype of a blockbuster drug, they are "astounded by the weakness of Vivus' intellectual property protection, and the lack of due diligence on the Street."
Needless to say, Citron sees déjà vu all over again.
Citron said the company failed to provide strong patent protection for Qsymia, which they see as a critical weakness.
Shares of VVUS are down 9 percent to $26.40 on the report. Rivals Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) and Orexigen Therapeutics, Inc. (Nasdaq: OREX) are down 6 percent and 8 percent, respectively.
Read the full report here
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
In the report, Citron notes that while the company now has FDA approval for its weigh loss drug Qsymia - it is "not a short path to riches." They cite the example 8 years ago when Nitromed received FDA approval, Wall Street was buzzing about the name and the stock was over $20 per share. Three years later the company sold for $0.80 per share.
Citron said despite the hype of a blockbuster drug, they are "astounded by the weakness of Vivus' intellectual property protection, and the lack of due diligence on the Street."
Needless to say, Citron sees déjà vu all over again.
Citron said the company failed to provide strong patent protection for Qsymia, which they see as a critical weakness.
Shares of VVUS are down 9 percent to $26.40 on the report. Rivals Arena Pharmaceuticals, Inc. (Nasdaq: ARNA) and Orexigen Therapeutics, Inc. (Nasdaq: OREX) are down 6 percent and 8 percent, respectively.
Read the full report here
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Can AMD (AMD) Shake Off the Goldman Downgrade?
- UPDATE: Uni-Pixel (UNXL) Takes Beating in Friday Trading
- UPDATE: Kansas City Southern (KSU) to Replace Dean Foods (DF) in S&P 500; WhiteWave Foods (WWAV) to S&P MidCap 400
Create E-mail Alert Related Categories
FDA, Momentum Movers, Trader TalkRelated Entities
Citron Research
Login with Facebook
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
