Is This Obesity-Drug Maker in Trouble?

With Arena Pharmaceuticals  (NASDAQ: ARNA  ) and Eisai still waiting for their obesity drug Belviq to complete DEA scheduling, it was their chief rival VIVUS (NASDAQ: VVUS  ) that made news today. All eyes were on VIVUS' decision to take out a loan that could amount to $110 million.

But why is this necessary at all? Does the company need more capital to enhance its marketing strategy for the obesity drug Qsymia, or is this a signal that VIVUS is currently in a difficult financial situation? Health-care analyst Max Macaluso sheds light on this news in the following video.

Is now the time to sell VIVUS?
VIVUS' shares were clobbered after Qsymia's dismal launch. Investors everywhere are wondering whether the tide will turn for this fledgling drugmaker or if now is the perfect time to sell. In a new premium research report, the Fool's top health-care contributor breaks down this complex story and explains the details VIVUS investors must know -- including reasons to buy and sell. To find out more about this premium report click here now.


Read/Post Comments (5) | Recommend This Article (3)

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  • Report this Comment On March 26, 2013, at 6:57 PM, tar262weir333 wrote:

    Get the money from Cramer. Heaven knows he's already got at least that much invested in trying to destroy this company along with his "special friends" in my humble opinion, of course.

  • Report this Comment On March 26, 2013, at 8:30 PM, gazoo99 wrote:

    VVUS is down 4.5 % on the day so far on the news about an operating loan.

    To secure the debt, Vivus granted Pharmakon Advisors "patents, trademarks, copyrights and regulatory filings related to the Product." The "Product" is Qsymia. So, if Vivus defaults, Pharmakon gets basically everything of value.

    This loan reeks of desperation on Vivus' part.

    And then there's Stendra. Forgotten about Vivus' erectile dysfunction drug? You're not alone. FDA approved Stendra last April -- almost one year ago -- but the drug remains on the shelf because Vivus has been unable to find any company willing to buy it.

  • Report this Comment On March 26, 2013, at 9:05 PM, adumfraudstain wrote:

    VVUS management gets more cash for obsolete refuse while Pharmakon just conned losing VVUS shareholders into further misery. Brilliant!

  • Report this Comment On March 27, 2013, at 4:46 AM, RSRdriver wrote:

    Vivus has made the right decision!

    If they had made a decision to go with a company that gave them about half of what they got and forever charged them 36% for it as Arena has done, THAT would have been a bad decision!

  • Report this Comment On March 30, 2013, at 1:53 AM, infinityalertz wrote:

    Hey this was a nice post, i found a link few days ago and their review about some product was awesome. I looked into only coz my frndz pics were posted in it..

    Looks like it really worked :)

    Here is the link http://atozreviews.com/archives/41

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