Friday, June 24, 2022

VIVUS, Inc. (NASDAQ:VVUS) BioPharm Stock on the Rise

VIVUS, Inc. (NASDAQ:VVUS) is a biopharmaceutical company on the rise with innovative treatments for obesity and sexual health. 

A rising stock to watch in the biopharmaceutical sector is California-based VIVUS, Inc. (NASDAQ: VVUS), a biopharmaceutical company with operations in the development and commercialization of two major therapeutic products, one for obesity and one for erectile dysfunction. Those are both obviously huge product segments, and VIVUS now has the attention of investors looking for a breakthrough biopharmaceutical company with strong future prospects.

VIVUS, Inc. (NASDAQ:VVUS) shares are currently trading at $1.33, giving the company a market cap of $131.22 million. Over the most recent 52-week period, shares of the company have traded as low as $0.92 and as high as $1.85. Most recently, shares have traded in a range of $1.30 – $1.47. The consensus price target for VVUS, based on at least one analyst covering the stock, is $2.80.

What makes the company unique is that it has two therapies that have been approved by the U.S. FDA: Qsymia for chronic weight management and STENDRA for erectile dysfunction. Moreover, the company has completed a Phase II trial of Qsymia for obstructive sleep apnea (OSA) and diabetes.

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The star performer for VVUS is Qsymia. The product is sold in 40,000 retail pharmacies with a doctor’s prescription. In the most recent financial quarter, 3Q 2016, Qsymia accounted for $12.294 million of the company’s $13.353 million in total revenue. The remainder of the revenue came from royalty revenue derived from STENDRA and SPEDRA (the European version of the ED therapy).

One major focus of VIVUS, Inc. appears to be protecting the company’s patent portfolio from generic competitors. As part of the company’s announced 3Q 2016 results, for example, the company reported on its patent protection efforts. The company reported positive news on Qsymia. It now appears that companies such as Teva Pharmaceuticals trying to sell generic versions of Qsymia prior to patent expiration will be blocked. That’s obviously great news for VIVUS, seeing how dependent the company is on Qsymia for revenue.

The company recently announced a licensing deal with Metuchen Pharmaceuticals for STENDRA, its erectile dysfunction (ED) treatment. In exchange for a payment of $70 million, Metuchen now has an exclusive license to market and sell STENDRA in the U.S., Canada, South American and India. Another similar deal could potentially be in the works, since STENDRA has been approved for use within Europe under the name SPEDRA.

Going forward, the company is also placing emphasis on what it refers to as its “growing pipeline” of therapeutic products for obesity, diabetes, sexual health and sleep apnea. As a result, investors will be keeping a close eye on the new clinical trials for Qsymia that could help patients treat sleep apnea and diabetes.

Despite this encouraging news on the R&D front, the company’s financial picture is mixed. The company reported a net loss in 3Q 2016 of $9.2 million. That, however, represents a big improvement from the year-earlier period, when the company reported a net loss of $16.1 million. The company, though, has a strong cash position.

As long as VVUS continues to develop innovative, next-generation therapies to meet unmet patient needs in obesity, diabetes and sexual health, the company will have the attention of investors. The only question is how much higher the company’s stock can go. Based on the company’s current stock price of $1.33 and an analyst price target of $2.80, that could be almost 100 percent to the upside. For more news on VIVUS, Inc. (NASDAQ:VVUS) and other fast-moving penny stocks, please subscribe to below.

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