VVUS
Dow Jones Newswires
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NEW YORK (Dow Jones)--Vivus Inc.'s (VVUS) shares surged as much
as 108.6% Monday after the company reported that it had received a
patent for the commercialization of agents and steroid hormones for
treating sexual dysfunction in women.
Vivus spokeswoman Nina Ferrari said the patent is important because it
strengthens its sexual dysfunction product pipeline. The Menlo Park, Calif.,
company currently markets Muse, a drug that treats male impotence.
Vivus is in preclinical studies for a topically applied product that uses the
new patent's technology. Ferrari said Vivus expects to move to human
trials "as soon as possible," but the company hasn't developed a specific
time frame.
Mehta Partners analyst Sergio Traversa said it is difficult to evaluate
Monday's news because the product is at a very early stage in its
development. Traversa said he expects to see some correction of
Monday's activity on Tuesday.
The analyst said Vivus has yet to prove that topical sexual dysfunction
treatments can be competitive against oral therapies such as Pfizer Inc.'s
(PFE) Viagra.
"Viagra and Pfizer have shaded all the other companies in this area," said
Traversa.
Ferrari said the availability of oral treatments hurt its Muse sales, but safety
concerns cause some patients to prefer applied topically.
Muse sales fell to $71 million in 1998 from $130 million in 1997, mostly
due to market share lost to Viagra, said the company spokeswoman.
Vivus shares were recently trading at 3 15/16, up 1 3/4, or 80% on
volume of 8.6 million shares. Average daily volume is 490,000 shares.
Earlier, the stock rose as high as 4 9/16.
Vivus spokeswoman Ferrari said the movement in Vivus' stock may have
been influenced by some investors covering short positions. Short interest
in the stock recently was 6 million shares. The company has about 31
million shares outstanding.
"Our stock has been down significantly over the last six months," said
Ferrari. "Today's news is reassurance that the company is heading on the
right pathway."
The spokeswoman said Vivus expects to receive marketing clearance for
Muse in Spain, Italy and France in the first half. With each clearance, it will
receive a $2 million milestone payment from Astra AB (A), its European
marketing partner.
On Feb. 25, the company received marketing clearance for Muse in
Germany.
Sidney Taubenfeld, an analyst for Sturza's Medical Research, believes the
milestone payments are more important for Vivus than the receipt of the
patent.
"The company needs to increase its sales," said Taubenfeld. He said any
kind of broadening of its market is good for Vivus.
"At this time, I really don't know what (the patent) means in real terms,"
said Taubenfeld.
-Christina Cheddar (201) 938-5400 |
