Shares of drug maker VIVUS, Inc.(NASDAQ:VVUS) declined
5.56% to $21.06 on Thursday, after Credit Suisse analyst Lee Kalowski, stated
that Wall Street might be exceeding their estimates regarding the initial sales
of the company’s obesity treatment Qsymia. His estimates are around $12 million
in Q4 revenue, which is almost half of the predictions made by others.
Kalowski, who gave an “Outperform” rating on the
company stock, elaborated that sales of Qsymia might be less due it being
released with a comparatively small number of sales representatives, not being
marketed to consumers directly, and being accessible via mail order only.
Wholesalers and pharmacies are not in the picture as of now. Qsymia was
launched in the US
last month and it is the first long-term prescription weight loss drug
available in the market after 1999. This is also the only approved drug of
Vivus.
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There is scope for the market to expand. A body
of advisers to the European Union’s health agency is in the process of
analyzing the drug, even though Vivus is not too sure if the EU advisory board
will approve. A request has been made to US regulators so that the drug can be
made available in medical shops.
However, Qsymia will need to take on rivals in
the weight-loss drug market because the FDA has given a green light to Arena
Pharmaceuticals’ Belviq, even though Qsymia is perceived as being the most
effective among the two. Belviq will be available for sale in early 2013.
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