VIVUS Shares Hit Hard Today after Earnings

Obesity drug manufacturer Vivus Inc,

slumped 22% in early trade, reporting a net loss of $40.40 million or 40 cents a share in the third quarter. Analysts and investors had anticipated losses of 32 cents for the recently approved Qsymia makers. Vivus announced that revenue stood at $41,000 derived from shipment of the obesity drug (approved by the FDA in July) from certified pharmacies to patients. Marking Vivus' lowest intraday value since February 21st, losses were attributed to higher spending linked to general and administrative expenses related to marketing Qsymia. Administrative and general expenses increased from $5.2 million to 31.3 million compared to the previous year. Research and Development costs edged up from $3.7 to $9.3 million. Today, the company however explained that the hefty out of pocket costs were discouraging patients from following through their prescriptions. During a conference call today, Vivus intimated opting to issue coupons to encourage uptake by reducing out of pocket costs. Another option the company may exploit might be partnering with a giant drug maker with a strict focus on primary care doctors. Investors are now poking holes at the California-based company which had gained 53 percent through the year, citing weaknesses in its target strategy. The company is claimed to have shifted focus from primary care physicians to specialty doctors who are less likely to prescribe Qsymia.