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VIVUS (VVUS) Q3 Loss Narrower Than Expected, Revenues Up Y/Y
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VIVUS Inc. reported a loss of 87 cents per share for the third quarter of 2018, wider than a loss of 57 cents in the year-ago period but narrower than the Zacks Consensus Estimate of $1.10. Quarterly revenues increased 19.1% from the year-ago period to $18.1 million mainly due to contribution of sales from recently acquired drug, Pancreaze.
So far this year, VIVUS shares have decreased 32.1% compared with the industry’s decline of 16.2%.
Quarter in Detail
Product revenues during the quarter rose 66.3% to $16.5 million.
The company’s weight management drug Qsymia generated net product sales of $9.7 million, down 1.8% from the year-ago period due to decrease in shipments of the drug.
Pancreaze brought in sales of $6.7 million in its first full quarter of sales. VIVUS acquired the exocrine pancreatic insufficiency drug in June this year from Janssen, a subsidiary of Johnson & Johnson (JNJ - Free Report) .
However, supply revenues from Stendra/Spedra were significantly down to $0.47 million in this quarter compared with $2.1 million in the year-ago period. Royalty revenues from sales of Pancreaze in Canada and Spedra in Europe were $1.1 million, up 73.5%.
Selling, general and administrative (SG&A) expense was $8.5 million, a 0.8% increase year over year. The increase was due to higher marketing and promotional activities for Qsymia, which was mostly offset by cost control initiatives.
Research and development expense increased 133% to $2.1 million in the reported quarter due to increased development efforts for VI-0106 for the treatment of pulmonary arterial hypertension.
Our Take
Performance of VIVUS’ obesity drug, Qsymia, was poor this quarter with its sales declining year over year as well as sequentially in the third quarter. The drug’s sales continued to be impacted by seasonality. However, the company remains focused on efforts to promote Qsymia, and cost cutting initiatives. The acquisition of Pancreaze boosted product revenues significantly. Moreover, retirement of its convertible debt during the quarter will reduce interest payments.
VIVUS stated that it anticipates higher operating expenses going forward due to post marketing requirements, integration and commercialization efforts for Pancreaze.
Although the acquisition of more cash-flow positive drugs like Pancreaze is likely to boost sales, it will also increase operating expenses.
CRISPR Therapeutics’ estimates have narrowed from loss of $2.95 to $2.92 for 2018 over the past 60 days. The company delivered a positive earnings surprise in two of the trailing four quarters, delivering average beat of 19.50%. Share price of the company has increased 39.6% year to date.
Vertex’s earnings per share estimates have moved up from $3.73 to $3.83 for 2018 over the past 30 days. The company delivered a positive earnings surprise in all the trailing four quarters, delivering average beat of 18.94%. The company’s shares have rallied 17% year to date.
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VIVUS (VVUS) Q3 Loss Narrower Than Expected, Revenues Up Y/Y
VIVUS Inc. reported a loss of 87 cents per share for the third quarter of 2018, wider than a loss of 57 cents in the year-ago period but narrower than the Zacks Consensus Estimate of $1.10. Quarterly revenues increased 19.1% from the year-ago period to $18.1 million mainly due to contribution of sales from recently acquired drug, Pancreaze.
So far this year, VIVUS shares have decreased 32.1% compared with the industry’s decline of 16.2%.
Quarter in Detail
Product revenues during the quarter rose 66.3% to $16.5 million.
The company’s weight management drug Qsymia generated net product sales of $9.7 million, down 1.8% from the year-ago period due to decrease in shipments of the drug.
Pancreaze brought in sales of $6.7 million in its first full quarter of sales. VIVUS acquired the exocrine pancreatic insufficiency drug in June this year from Janssen, a subsidiary of Johnson & Johnson (JNJ - Free Report) .
However, supply revenues from Stendra/Spedra were significantly down to $0.47 million in this quarter compared with $2.1 million in the year-ago period. Royalty revenues from sales of Pancreaze in Canada and Spedra in Europe were $1.1 million, up 73.5%.
Selling, general and administrative (SG&A) expense was $8.5 million, a 0.8% increase year over year. The increase was due to higher marketing and promotional activities for Qsymia, which was mostly offset by cost control initiatives.
Research and development expense increased 133% to $2.1 million in the reported quarter due to increased development efforts for VI-0106 for the treatment of pulmonary arterial hypertension.
Our Take
Performance of VIVUS’ obesity drug, Qsymia, was poor this quarter with its sales declining year over year as well as sequentially in the third quarter. The drug’s sales continued to be impacted by seasonality. However, the company remains focused on efforts to promote Qsymia, and cost cutting initiatives. The acquisition of Pancreaze boosted product revenues significantly. Moreover, retirement of its convertible debt during the quarter will reduce interest payments.
VIVUS stated that it anticipates higher operating expenses going forward due to post marketing requirements, integration and commercialization efforts for Pancreaze.
Although the acquisition of more cash-flow positive drugs like Pancreaze is likely to boost sales, it will also increase operating expenses.
VIVUS, Inc. Price, Consensus and EPS Surprise
VIVUS, Inc. Price, Consensus and EPS Surprise | VIVUS, Inc. Quote
Zacks Rank & Stocks to Consider
VIVUS currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the biotech sector are CRISPR Therapeutics (CRSP - Free Report) and Vertex Pharmaceuticals Inc. (VRTX - Free Report) . While CRISPR Therapeutics sports a Zacks Rank #1 (Strong Buy), Vertex carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
CRISPR Therapeutics’ estimates have narrowed from loss of $2.95 to $2.92 for 2018 over the past 60 days. The company delivered a positive earnings surprise in two of the trailing four quarters, delivering average beat of 19.50%. Share price of the company has increased 39.6% year to date.
Vertex’s earnings per share estimates have moved up from $3.73 to $3.83 for 2018 over the past 30 days. The company delivered a positive earnings surprise in all the trailing four quarters, delivering average beat of 18.94%. The company’s shares have rallied 17% year to date.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>