UPDATE: JP Morgan Raises PT on VIVUS to $30

JP Morgan has published a research report on VIVUS (NASDAQ: VVUS) and has raised the price target from $13 to $30 after the company's positive vote by the FDA to approve Qnexa.

In the report, JP Morgan writes, "We reiterate our OW rating on VVUS following the resounding positive vote by the FDA's Endocrinologic and Metabolic Drugs Advisory Committee (EMDAC) to approve Qnexa for the treatment of obesity. VVUS shares were halted all day but nearly doubled once they opened after hours. We would still be buyers given the magnitude of today's vote, the company's 100% global ownership of this asset, substantial P&L and NPV leverage, 18% short interest, and the fact that this stock is under owned by most healthcare investors. We are raising our target to $30 from $13, and we believe this is still based on conservative assumptions."

JP Morgan maintains its Overweight rating on VIVUS, which closed yesterday at $10.55.