) shares gained 6% after the company announced that it has inked
a licensing and commercialization deal with
) for its erectile dysfunction (ED) drug, Stendra (EU trade name:
Spedra). However, the share price fell in the following trading
sessions. Overall, the shares are up a marginal 0.4% since the
As per the terms of the deal, Sanofi will undertake the
responsibility of obtaining regulatory approval and
commercializing the drug in Africa, the Middle East, Turkey, and
the Commonwealth of Independent States (CIS) including Russia. In
exchange, VIVUS will be eligible to receive upfront payments,
regulatory and sales milestone payments of up to $61 million from
Sanofi. VIVUS will also receive tiered royalties on net sales of
The Sanofi agreement marks the third deal for Stendra. Earlier,
VIVUS had collaborated for the drug with privately-held Italian
pharmaceutical company, Menarini (40 European countries,
Australia and New Zealand) and
Auxilium Pharmaceuticals, Inc.
). Auxilium possesses the rights to Stendra in the U.S. and
We are positive on the deal with Sanofi, which is in-line with
the company's strategy of finding suitable commercialization
partners for Stendra.
VIVUS is also looking for a partner for its obesity drug, Qsymia,
which was launched in the U.S. in Sep 2012. We are concerned
about the slower-than-expected ramp up in Qsymia sales.
Additionally, the competitive nature of the obesity market given
the presence of
Arena Pharmaceuticals, Inc.
) Belviq among others also keeps us concerned.
The successful commercialization of Qsymia is crucial for the
financial performance of VIVUS as it can drive the company to
VIVUS, a biopharmaceutical company, currently carries a Zacks
Rank #3 (Hold). Some better-ranked stocks include Auxilium
carrying a Zacks Rank #2 (Buy).
ARENA PHARMA (ARNA): Free Stock Analysis
AUXILIUM PHARMA (AUXL): Free Stock Analysis
SANOFI-AVENTIS (SNY): Free Stock Analysis
VIVUS INC (VVUS): Free Stock Analysis Report
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