Vivus Rallies on Prescription Increase
Shares of Vivus (NASDAQ: VVUS) rallied nearly 14 percent on Monday after a report from Symphony Health said that prescriptions of the company's drug, Qsymia, increased 44 percent during the week ended November 12.
However, IMS Health said prescriptions increased only 15 percent over the same period.
Nevertheless, investors took the news positively. Vivus is heavily reliant on the Qsymia drug, which helps obese patients lose weight.
Shareholders were greatly rewarded back in February, after the FDA approved Qsymia. At that time, shares rocketed up from about $11 to over $23. In the following months, shares continued to rally, approaching $30 per share.
However, as with many biotechs, shares came hurtling back to earth when disappointing earnings reports indicated that Qsymia was not selling as well as anticipated.
Still, despite the crash, shares are still up over 30 percent year-to-date. What's more, statistics indicate that the obesity epidemic in the U.S. is as bad as ever. Vivus might give investors a wild ride, but if Qsymia can catch on, there might be great upside from here.
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