VIVUS Inc. (VVUS) Spikes in Early Trading on Positive FDA Statement

Posted by on Jul 13, 2010 | No comment

Shares of VIVUS Inc. (NASDAQ: VVUS) are soaring in today’s morning session, reaching a high of $12.74 in early trading. Shares are up 11.64% to $11.89 with volume up from daily average of 5.43 million to 5.90 million.

The trading activity stems from a positive statement by the U.S. Food and Drug Administration on the company’s drug weight loss pill Qnexa, which will be up for a review in front of an FDA panel on July 15.

The FDA said that Qnexa appears to help in people losing weight. However, the FDA has raised some safety concerns about the drug. Qnexa, if approved by the FDA, will be the first prescription weight-loss pill to have been approved in a decade. FDA staff reviewers have said that all three doses of Qnexa “were efficacious for weight loss.” Howerver, the administration also pointed out five safety concerns.

VIVUS awaits a final decision on Qnexa from the FDA on October 28. Despite the safety concerns, investors have taken the FDA’s statement positively. Markets have been watching the developments closely and any positive news, and word of the FDA’s review lifted biotech stocks in today’s trading.

VIVUS stock has a 52-week range of $5.57-$13.68. It is currently trading above its 50-day and 200-day moving averages. The stock is likely to see some huge activity this week as the FDA reviews Qnexa on July 15.

VIVUS shares have support at $10.09 and have broken through their resistance level of $11.41 today.

Apart from Qnexa, VIVUS’s other drug candidate Avanfil for treatment of erectile dysfunction is currently in phase 3 trials. Also, Qnexa is currently in phase 2 trials for treatment of diabetes and obstructive sleep apnea.

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