VIVUS (VVUS) Reports Narrower-than-Expected Loss In Q3
Zacks Investment Research | Nov 11, 2016 02:51AM ET
VIVUS Inc. (NASDAQ:VVUS) 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.
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