) recently announced that it has entered into an agreement with a
Pharmakon Advisors managed investment fund for a $110 million
non-equity financing. Vivus will initially draw $50 million for
the commercialization of its obesity drug, Qsymia and other
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As per the terms of the agreement, Vivus has an option to draw an
additional $60 million by the end of 2013. Vivus will start
repaying the debt from the second quarter of 2014 through second
quarter of 2018. The quarterly payments will be based on a capped
percentage on net sales of Qsymia subject to the maximum of a
We note that Qsymia was approved by the US Food and Drug
Administration (FDA) in Jul 2012. The FDA cleared Qsymia as an
adjunct to a healthy diet (low on calories) and increased
physical activity for chronic weight management in obese (Body
Mass Index, or BMI - 30 or more) or overweight (BMI - 27 or more)
adults suffering from at least one weight-related co-morbid
condition. However, the CHMP maintains a negative opinion on the
marketing authorization application (MAA) for Qsymia.
Vivus is also evaluating Qsymia for the treatment of type II
diabetes (phase II) and obstructive sleep apnea (phase II).
We remind investors that apart from Qsymia, another weight-loss
Arena Pharmaceuticals, Inc.
) Belviq, also received approval in the US last year.
Orexigen Therapeutics, Inc.
) is also developing a candidate, Contrave, targeting the
lucrative obesity market.
Vivus, a biopharmaceutical company, currently carries a Zacks
Rank #3 (Hold). Biopharma companies that currently look more
) with a Zacks Rank #1 (Strong Buy).