VIVUS (VVUS) Weighed-Down by Negative Report
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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
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
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