How Much Is Vivus Worth?
By Dana Blankenhorn: With a drug to treat erectile dysfunction (ED) approved and another to treat obesity rounding the turn, heading for home, these should be happy days at Vivus (VVUS).In some ways they are. Not many companies sport a $2.16 billion market cap despite zero dollars in sales. Not many companies propose selling 8.5 million new shares as the share price pops, spurred by an initial yes from a panel looking at Qnexa, its weight loss drug, in February.Why all the excitement? Consider that the anti-obesity drug market, now estimated at $2 billion in 2017, could be worth even more if something safe and effective were available. And that despite insurers resisting payments, the ED market is estimated to be worth $3 billion.The Vivus preparations have advantages in both these areas.
- Qnexa actually consists of two drugs that have long been available, as generics, to treat epilepsy and excess
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