Shares of VIVUS Inc. (NASDAQ: VVUS) continued yesterday’s ascent in early trading, up 1.11% to $11.82 shortly after the opening bell. VVUS closed 9.56% higher at $11.69, with volume up from daily average of 4.67 million to 12.78 million. The stock was active again in after-hours trading today. It fell 0.77% to $11.60 in after-hours trading.
VIVUS has a 52-week range of $5.55-$13.68. It is currently trading above its 50-day and 200-day moving averages of $11.19 and $9.57, respectively. The stock has seen support at $9.76. It has broken through its resistance level of $11.41 in Thursday’s trading.
Wedbush recently initiated coverage on the VIVUS with an Outperform rating. Wedbush has set a price target of $20 on the VIVUS stock. The stock has a consensus recommendation of Outperform. Currently, it has 1 Buy, 5 Outperform and 6 Hold ratings.
VIVUS is likely to be in the news over the next few days as its drug candidate for obesity, Qnexa, will come up for review with the U.S. FDA on July 15. If Qnexa is approved by the U.S. FDA, it will be the first prescription drug for the treatment of obesity in a decade in the U.S.
Going by the past history of drugs for treatment of obesity that have come up for review by the FDA, the future for FDA approval is questinable. According to Reuters report, in the past, pills for obesity have not been approved by the FDA, or have received severe warnings, or have been taken off the market.
Apart from Qnexa, VIVUS’ other drug candidate, Avanafil, is in phase 3 trials for erectile dysfunction.
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