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 fat-busting drug company VIVUS (VVUS) charged higher by as much as 14% after two research reports indicated that sales of Qsymia improved in November.
So what: Now before you go clicking the buy button, keep in mind that the figures from the two research companies were far from similar. Health-care research firm Symphony Health Solutions pointed to a 44% increase in Qsymia prescriptions for the week ending Nov. 12. On the other hand, IMS Health noted just a 15% increase during the same period. Who's right? It's anyone's guess at the moment -- but both at least point to a double-digit increase in Qsymia sales.
Now what: The conflicting data doesn't exactly inspire confidence that these figures can be trusted, but I would have to assume that with Aetna (AET) now on board and covering Qsymia -- and with other insurers likely to join it -- that sales are going to jump by double digits for quite some time. Out-of-pocket costs to the patient are the prime deterrent for Qsymia, and eliminating those will go a long way to boosting sales. It's still going to be a long road, however, as Qsymia failed to gain approve in Europe, and the door is now wide open for Arena Pharmaceuticals (ARNA), which has a licensing partnership with Eisai to sell its fat-busting pill, Belviq, to step in and fill the international void.
