Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotechnology company VIVUS
So what: VIVUS shares have more than doubled over the past year on the blockbuster promise of Qsymia, which is already approved in the U.S., but being denied access to Europe naturally lowers the drug's peak sales and market share potential. In fact, Arena Pharmaceuticals
Now what: While today's news is certainly disappointing for VIVUS, management fully intends to meet any additional requirements leading to Qsymia's approval in Europe. "We will work closely with the [Committee for Medicinal Products for Human Use] to address the Committee's concerns," President Peter Tam reassured investors. "VIVUS is committed to making this important medication available to obese patients in Europe." So while VIVUS remains just too speculative for average Fools, today's double-digit drop -- the stock is now off 30% from its 52-week high -- might be an attractive opportunity for biotech-savvy contrarians.
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