Today’s Hot Stock under Review: VIVUS, Inc. (NASDAQ: VVUS)

VIVUS, Inc. (NASDAQ: VVUS) spotted trading -52.08% off 52-week high price. On the other end, the stock has been noted 28.84% away from the low price over the last 52-weeks. The stock changed -1.77% to recent value of $2.77. The stock transacted 17886 shares during most recent day however it has an average volume of 70.82K shares. The company has 10.76M of outstanding shares and 9.79M shares were floated in the market.

VIVUS, Inc. (VVUS) recently stated financial results for the quarter ended September 30, 2019 and provided a business update.

Qsymia net product revenue was $9.6M and $10.0M in the third and second quarters of 2019, respectively. In both the third and second quarters of 2019, about 86,000 prescriptions were dispensed. The Company continues to migrate Qsymia patients from a traditional retail pharmacy model to the Qsymia Advantage Program that is predictable to improve access to Qsymia through, among other things, direct-to-patient distribution and improved pricing. During the third quarter, 22% of Qsymia scripts were dispensed through the Qsymia Advantage Program’s Direct-to-Patient model, up from 8% and less than 2% in the second and first quarters of 2019, respectively.

Milestone revenue represents the payment received related to Alvogen, VIVUS’ Korean marketing partner, obtaining marketing authorization for Qsymia from the South Korea MFDS.

PANCREAZE^® net product revenue was $5.3M and $5.1M in the third and second quarters of 2019, respectively. In the third quarter, this amount includes $0.1M related to Canadian sales of PANCREASE^® MT. Previous to the third quarter, the Company received a royalty on Canadian sales. The Company presently has a dedicated 10-person sales force, sampling program, full patient support program, a plan for investigator-sponsored trials in oncology, a digital marketing campaign strategy, together with a number of other enhancements.

Supply revenue consists of sales of STENDRA^®/SPEDRA^™ to our licensees for sales in the EU and U.S. Supply revenue varies based on the timing of orders from our licensees and consists of minimum order requirements and such purchases do not correspond to end user demand.

Royalty revenue was $0.6M and $1.5M in the third and second quarters of 2019, respectively. Third quarter 2019 royalty revenue consisted of royalties earned on SPEDRA European revenues. Second quarter 2019 royalty revenue consisted of $1.0M of royalties on PANCREASE MT Canadian revenue and $0.5M of royalties on SPEDRA European revenues. In the third quarter, the Company assumed commercial accountability for PANCREASE MT and began recording sales of PANCREASE MT as net product revenue.

Total cost of goods sold not including amortization was $3.0M and $4.4M in the third and second quarters of 2019, respectively. The decrease was primarily Because of no STENDRA supply revenue in the third quarter. Supply revenue varies based on the timing of orders by our commercial partners.

Amortization of intangible assets was $3.6M in both the third and second quarters of 2019. The amount primarily consisted of amortization expense of costs capitalized related to the acquisition of PANCREAZE.

Selling, general and administrative expense was $9.2M and $10.1M for the third and second quarters of 2019, respectively, and included selling and marketing expense of $4.5M and $4.6M, respectively. VIVUS expects selling, general and administrative expenses to fluctuate with business development activities.

Research and development expense was $3.3M and $2.4M in the third and second quarters of 2019, respectively. In 2019, research and development efforts primarily consisted of activities related to the Qsymia adolescent and efficacy study (OB-0403), PANCREAZE post-marketing requirements assumed from Janssen and ongoing PANCREAZE product improvement initiatives.

Total interest and other expense was $9.9M and $3.9M in the third and second quarters of 2019, respectively. The increase in interest expense in the third quarter was Because of prepayment premiums related to the reduction in debt balances.

Net loss for the third and second quarters of 2019 was $11.1M and $5.9M, respectively. Cash, cash equivalents and available-for-sale securities were $40.1M at September 30, 2019.

Its earnings per share (EPS) expected to touch remained -21.90% for this year while earning per share for the next 5-years is expected to reach at 0.80%. VVUS has a gross margin of 76.70% and an operating margin of -7.60% while its profit margin remained -40.60% for the last 12 months. According to the most recent quarter its current ratio was 0.4 that represents company’s ability to meet its current financial obligations. The price moved ahead of -1.36% from the mean of 20 days, -16.47% from mean of 50 days SMA and performed -25.20% from mean of 200 days price. Company’s performance for the week was -0.72%, 2.21% for month and YTD performance remained 24.22%.