) second quarter 2014 loss (excluding one-time items) of 25 cents
per share was much narrower than the Zacks Consensus Estimate of a
loss of 31 cents and the year-ago loss of 52 cents.
The company's total revenues for the second quarter of 2014 came in
at $21.9 million as compared to $5.5 million recorded in the
year-ago period. The second quarter 2014 revenues included $4.2
million of license and milestone revenue, $5.7 million of supply
revenue and $1.1 million of royalty revenue related to its erectile
dysfunction (ED) drug, Stendra (EU trade name: Spedra). The Zacks
Consensus Estimate stood at $16 million for the reported quarter.
Quarter in Details
The company's weight management drug Qsymia generated net product
sales of $11 million as compared to $4.1 million recorded in the
first quarter of 2014. Qsymia prescriptions (approximately 138,000)
witnessed an approximately 2.4% sequential increase in the reported
quarter. In the second quarter of 2014, 61% of total prescriptions
were a free good or on a discount offer. At the second quarter
conference call, the company stated that it is still looking for
partnership opportunities for Qsymia.
Apart from Qsymia, the company's portfolio consists of another
product Stendra. Auxilium Pharmaceuticals Inc. (
) has launched the product in the U.S. in Dec 2013, while Menarini
launched the drug in the EU in Apr 2014.
VIVUS has licensed Sanofi (
) for the development and commercializing of the drug in Africa,
the Middle East, Turkey, and the Commonwealth of Independent States
(CIS) including Russia.
In the second quarter of 2014, research and development expenses
were $4.1 million, down 55.7% year over year. Selling, general and
administrative expenses were down 28.5% to $28.3 million.
VIVUS posted a narrower-than-expected loss and a revenue beat in
the second quarter of 2014. We are also pleased with the Qsymia
However, the competitive nature of the obesity market, given the
presence of Belviq and others, keeps us concerned. The
successful commercialization of Qsymia is crucial for the financial
performance of VIVUS. Additionally, we believe it is important for
the company to find a suitable partner at this juncture to realize
the full potential of Qsymia.
Meanwhile, Auxilium has submitted a supplemental New Drug
Application (sNDA) for Stendra to include the 15-minute onset of
action data in the label. The FDA is expected to render a decision
by Sep 20, 2014. We believe Stendra's fast action could help the
drug gain share.
VIVUS, a biopharmaceutical company, currently carries a Zacks Rank
#3 (Hold). Some better-ranked biopharma stocks, worth considering,
include Alexion Pharmaceuticals, Inc. (
) with a Zacks Rank #2 (Buy).
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