After posting a narrower fourth-quarter loss, VIVUS (VVUS) stock tumbled more than 11% in Tuesday mid-day trading.
VIVUS stock initially rose in after-hours trading on Monday, but had slipped into negative territory by Tuesday morning as investors digested the news. Part of the reason for the decline in VIVUS stock may be concern over the prospects for the company’s anti-obesity Qsymia drug. Prescriptions for Qsymia totaled just 124,000 last year, meaning that Arena Pharmaceuticals’ (ARNA) rival obesity drug Belviq “should easily beat Qsymia in terms of prescriptions written during the first year on the market,” Daily Finance notes.
Investors may also have soured on VIVUS stock because the smaller quarterly loss was due to one-time milestone payments relating to its Stendra drug. There is no guarantee regarding future payments for the drug.
During the fourth quarter, VIVUS reported a net loss of $17.2 million, down 70% from $56.7 million in the year-ago period. Quarterly revenue was $44.1 million, up from $2 million in the prior-year period. Revenue was boosted by $34.9 million in licensing revenue for its Stendra drug.
VIVUS stock closed at $6.75 a share on Monday. VIVUS stock has fallen more than 40% over the past year.