Jefferies Maintains Underperform, $3 PT on VIVUS

Jefferies reiterates its Underperform rating and $3 price target on VIVUS (NASDAQ: VVUS) to reglect uncertainty in FDA request for change to proposed Qnexa.

Jefferies comments, "This morning, VVUS issued a press release noting that the FDA has asked for removal of the contraindication for Qnexa use in women of childbearing potential in the re-filed proposed label for Qnexa. We are uncertain whether the market should interpret this as an endorsement by the FDA of the broad indication or of the FORTRESS data, and we remain cautious on Qnexa approvability."

VVUS closed at $11.65 per share on Monday.