Brean Murray Carret & Co. Upgrades Vivus (VVUS) to Buy After FDA's Cardiovascular Advisory Panel Meeting
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Price: $0.47 --0%
Rating Summary:
3 Buy, 6 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
3 Buy, 6 Hold, 4 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Brean Murray Carret & Co. upgraded Vivus (NASDAQ: VVUS) from Hold to Buy with a price target of $30, saying the FDA CV meeting clearly demonstrated a health benefit to weight loss.
The firm comments, "Previously, it may have been argued that there was not a proven benefit to weight loss. Fundamentally, the FDA requires there to be a health benefit for a drug approval, meaning if weight loss was entirely cosmetic, there would not be a reason, or a risk benefit, for approval. However, throughout the panel discussions, primarily on the first day, it was clear enough that with at least a 5% weight loss there was a health benefit to weight loss, even though a 10% weight loss seemed more ideal and pointed to more ideal outcomes. It was also shown that with a life style change of better diet and exercise, an absolute weight loss of 10% could be obtained in about 23% of subjects. There were many benefits to weight loss pointed out by the presenters including sleep apnea and mobility, but, in our view, the most compelling benefit was the reduction in risk of developing type 2 diabetes. It was shown that a 5% weight loss could reduce the risk of developing type 2 diabetes by greater than 50% and a 10% weight loss could reduce the risk of developing type 2 diabetes by about 90%..."
...Overall the benefit analysis of the presentations put more pressure on the FDA to approve an obesity drug, which we believe will be Qnexa over any other."
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 $21.28 yesterday.
The firm comments, "Previously, it may have been argued that there was not a proven benefit to weight loss. Fundamentally, the FDA requires there to be a health benefit for a drug approval, meaning if weight loss was entirely cosmetic, there would not be a reason, or a risk benefit, for approval. However, throughout the panel discussions, primarily on the first day, it was clear enough that with at least a 5% weight loss there was a health benefit to weight loss, even though a 10% weight loss seemed more ideal and pointed to more ideal outcomes. It was also shown that with a life style change of better diet and exercise, an absolute weight loss of 10% could be obtained in about 23% of subjects. There were many benefits to weight loss pointed out by the presenters including sleep apnea and mobility, but, in our view, the most compelling benefit was the reduction in risk of developing type 2 diabetes. It was shown that a 5% weight loss could reduce the risk of developing type 2 diabetes by greater than 50% and a 10% weight loss could reduce the risk of developing type 2 diabetes by about 90%..."
...Overall the benefit analysis of the presentations put more pressure on the FDA to approve an obesity drug, which we believe will be Qnexa over any other."
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 $21.28 yesterday.
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