This morning, it was announced that Vivus' (VVIS) new weight loss drug, Qnexa, was rejected by a count of 9-7 by an FDA panel. The stock has been absolutely slammed by investors. Currently trading at 5.20/share, the stock has lost 57% of its value today. Although this would have been their blockbuster drug, it certainly isn't the companies only drug in its pipeline. First, the drug nearly passed; meaning that changes can be made to the drug and go through the clinical testing process again. Second, they have an ED drug in Phase III testing. They also have several investigational product candidates in late stages of clinical development.
I'm not saying that this is a long term investment; rather, I feel that these facts could be a catalyst for the stock to move higher over the next week. The stock has already started to trend higher since noon. Once again, I reiterate that this is risky, but a 10% move up in the stock over the next week is possible.
VVUS 5.20 -6.91(-57.06%)
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