We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
VIVUS (VVUS) Reports Narrower-than-Expected Loss in Q3
Read MoreHide Full Article
VIVUS Inc. reported a loss of 9 cents per share in the third quarter of 2016, narrower than both the year-ago loss of 15 cents and the Zacks Consensus Estimate of a loss of 25 cents.
However, the company reported total revenue of $13.4 million in the third quarter, down 46.2% from the year-ago period and below the Zacks Consensus Estimate of $14 million.
Qsymia Under Pressure
The company’s weight management drug Qsymia generated net product sales of $12.3 million, down 12.1% from the year-ago period despite prescription growth of 25.9% on a sequential basis and 33.9% on a year-over-year basis to approximately 146,000.
The company has launched a new Qsymia Patient Savings Offer in order to lure more patients to the brand and support their weight loss efforts over the long term. However, the anti-obesity pharmaceutical market, including Qsymia, declined 5% sequentially in the third quarter.
Stendra royalty revenues came in at $1.1 million, up 21.9% from the year-ago period.
In the reported quarter, research and development expenses were $1.7 million, down 13.3% year over year, reflecting the timing of clinical projects supporting Qsymia post-marketing requirements. Likewise, selling, general and administrative expenses were down 39.2% to $10.4 million.
On Sep 30, VIVUS inked a license, commercialization and commercial supply agreement with Metuchen Pharmaceuticals for Stendra. Under the terms of the agreement, VIVUS received an upfront payment of $70 million from Metuchen. In exchange, Metuchen received the rights to commercialize Stendra in the U.S., Canada, South America and India.
Our Take
VIVUS’ third-quarter results were mixed with the company reporting a narrower than expected loss but revenues missing estimates. Qsymia’s performance was dismal and challenges in the obesity market could make it difficult for the drug’s sales to pick up pace. Qsymia is also facing patent challenges.
Thus, the company is working on ramping up Qsymia sales and believes that the long-term upside potential for branded obesity products remains substantial given the growing rate of obesity in adults.
VIVUS’ shares were flat following the release of its third-quarter results.
VIVUS currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Exelixis, Inc. (EXEL - Free Report) , Infinity Pharmaceuticals, Inc. and Anika Therapeutics Inc. (ANIK - Free Report) . While Anika sports a Zacks Rank #1 (Strong Buy), both Infinity and Exelixis carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Anika’s earnings estimates increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 33.14%. Its share price has gained approximately 19% year to date.
Exelixis’ loss estimates narrowed from 71 cents to 51 cents for 2016 and from a loss of 16 cents to earnings of 4 cents for 2017 over the last 60 days. The company has posted a positive surprise twice in the trailing four quarters with an average beat of 38.52%. Its share price has skyrocketed above 150% year to date.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 28.38%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
VIVUS (VVUS) Reports Narrower-than-Expected Loss in Q3
VIVUS Inc. reported a loss of 9 cents per share in the third quarter of 2016, narrower than both the year-ago loss of 15 cents and the Zacks Consensus Estimate of a loss of 25 cents.
However, the company reported total revenue of $13.4 million in the third quarter, down 46.2% from the year-ago period and below the Zacks Consensus Estimate of $14 million.
Qsymia Under Pressure
The company’s weight management drug Qsymia generated net product sales of $12.3 million, down 12.1% from the year-ago period despite prescription growth of 25.9% on a sequential basis and 33.9% on a year-over-year basis to approximately 146,000.
The company has launched a new Qsymia Patient Savings Offer in order to lure more patients to the brand and support their weight loss efforts over the long term. However, the anti-obesity pharmaceutical market, including Qsymia, declined 5% sequentially in the third quarter.
Stendra royalty revenues came in at $1.1 million, up 21.9% from the year-ago period.
In the reported quarter, research and development expenses were $1.7 million, down 13.3% year over year, reflecting the timing of clinical projects supporting Qsymia post-marketing requirements. Likewise, selling, general and administrative expenses were down 39.2% to $10.4 million.
On Sep 30, VIVUS inked a license, commercialization and commercial supply agreement with Metuchen Pharmaceuticals for Stendra. Under the terms of the agreement, VIVUS received an upfront payment of $70 million from Metuchen. In exchange, Metuchen received the rights to commercialize Stendra in the U.S., Canada, South America and India.
Our Take
VIVUS’ third-quarter results were mixed with the company reporting a narrower than expected loss but revenues missing estimates. Qsymia’s performance was dismal and challenges in the obesity market could make it difficult for the drug’s sales to pick up pace. Qsymia is also facing patent challenges.
Thus, the company is working on ramping up Qsymia sales and believes that the long-term upside potential for branded obesity products remains substantial given the growing rate of obesity in adults.
VIVUS’ shares were flat following the release of its third-quarter results.
VIVUS INC Price, Consensus and EPS Surprise
VIVUS INC Price, Consensus and EPS Surprise | VIVUS INC Quote
Zacks Rank & Key Picks
VIVUS currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the health care sector include Exelixis, Inc. (EXEL - Free Report) , Infinity Pharmaceuticals, Inc. and Anika Therapeutics Inc. (ANIK - Free Report) . While Anika sports a Zacks Rank #1 (Strong Buy), both Infinity and Exelixis carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Anika’s earnings estimates increased from $1.96 to $2.06 for 2016 and from $2.03 to $2.09 for 2017 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 33.14%. Its share price has gained approximately 19% year to date.
Exelixis’ loss estimates narrowed from 71 cents to 51 cents for 2016 and from a loss of 16 cents to earnings of 4 cents for 2017 over the last 60 days. The company has posted a positive surprise twice in the trailing four quarters with an average beat of 38.52%. Its share price has skyrocketed above 150% year to date.
Infinity’s loss estimates narrowed from $3.84 to $3.79 for 2016 over the last 60 days. The company has posted a positive surprise in all of the four trailing quarters with an average beat of 28.38%.
Zacks' Top Investment Ideas for Long-Term Profit
How would you like to see our best recommendations to help you find today’s most promising long-term stocks? Starting now, you can look inside our portfolios featuring stocks under $10, income stocks, value investments and more. These picks, which have double and triple-digit profit potential, are rarely available to the public. But you can see them now. Click here >>