UPDATE: Credit Suisse Assumes Outperform, Cuts PT to $34 on Vivus; Qnexa REMS

Credit Suisse assumes its Outperform rating on Vivus

and lowers its price target from $36 to 34. Credit Suisse notes, "If approved, Qnexa is certain to carry a risk management program ("REMS"); the impact of this on Qnexa's revenues is uncertain. We suspect the REMS may impact both the launch trajectory and peak - we are cutting our US revenue forecasts through 2020. Other changes to our model include: assuming 100% of EU revenues (vs. only a 20% royalty previously) and higher SG&A in 2014 and beyond as VVUS scales up a large GP field force after the initial launch. These changes are outlined in Exhibits 1-2. The net result is our target price goes to $34 (from $36)." CP closed at $22.43 on Monday.