Analyst Highlights VIVUS Against Orexigen (OREX, VVUS)
Bank of America/Merrill Lynch is out with a very positive call for VIVUS, Inc. (NASDAQ: VVUS) after Orexigen Therapeutics, Inc. (NASDAQ: OREX) received an FDA panel backing yesterday for its Contrave diet pill for weight loss. The thesis here is that the path for FDA approval of Qnexa for weight loss will also be set.
BofA/ML raised its rating to BUY and more importantly it raised its price target objective to $12.00 from $6.00 in the call.
The note says, “We previously had low expectations for a near-term approval for VIVUS’ obesity drug Qnexa, due to concerns that the FDA would require a large scale cardiovascular events trial prior to approval, consistent with the agency’s more cautious stance on CV risks for metabolic drugs.
The FDA advisory panel’s vote for Orexigen’s Contrave is expected to provide VIVUS with a more clear path to overcome the FDA objections and requests.
Another issue is better efficacy for Qnexa from VIVUS. BofA noted that Qnexa has a better effect on blood pressure reduction and a better risk/reward profile with better efficacy against Contrave at 9% weight loss versus 5% weight loss.
Orexigen Therapeutics, Inc. (NASDAQ: OREX) is trading up above $11.00 in early pre-market trading after a $4.87 close and against a 52-week range of $3.81 to $8.88. VIVUS, Inc. (NASDAQ: VVUS) is trading up at almost $9.00 in early pre-market indications after a $7.80 close and against a 52-week range of $4.69 to $13.68.
JON C. OGG
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2 Responses to “Analyst Highlights VIVUS Against Orexigen (OREX, VVUS)”
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we all hope vivus is successful with the dietpill.if it works it will create a new situation for many diet-companies and many interests will clash.i hope for the good
I am kind of surprised that Contrave actually was voted through. I suspect that this is not the last we have seen of Qnexa based purely on the effectiveness of it. We will see.