Rodman & Renshaw Reiterates Perform, $10-$11 PT on VVUS
Rodman & Renshaw maintains its Perform rating and $10-$11 price target range on VIVUS (NASDAQ: VVUS) as the company released news that the FDA requested removal of the contraindication for women of childbearing potential (WOCBP) contained in Qnexa's proposed label.
Rodman & Renshaw says, "Despite what appears to have been largely viewed as positive news that has bumped the stock, we are unsure of the impact of the removal of the WOCBP contraindication and modified REMS on the odds of an on-time approval. ... Given the FDA's established hesitancy in approving Qnexa (and other anti-obesity drugs), the fact that the EMDAC panel in July of 2010 voted 10-6 against a recommendation for the drug and the fact that top-line data from the FORTRESS study showed an elevated risk for oral clefts, we do not believe that the FDA has now decided to forego the proposed contraindication and approve Qnexa in April with a broader label.
VVUS closed at $11.65 on Monday.
