Vivus (VVUS) rose 60% between May 11 and May 18. On May 18, Vivus stock closed at $0.80, a 142% increase from its 52-week low of $0.33 on April 2. On May 16, Vivus stock closed at $0.66, a ~26.7% increase over the previous close of $0.52 on May 15. The stock’s closing price on May 18 represented a ~28.1% hike from its previous day’s close at $0.62. The stock rose ~76% in the last quarter.
Headquartered in Cambell, California, Vivus is a fast-growing healthcare company focused on the development of innovative therapies for obesity, sexual health, and sleep. In May 2018, Vivus entered an agreement with Johnson & Johnson (JNJ) to acquire all product rights of Janssen Pharmaceuticals’ Pancreaze in the United States. The acquisition of Pancreaze could help in the expansion of Vivus’s product portfolio.
Pancrease finds its use in the treatment of individuals with pancreatic insufficiency. Pancreatic insufficiency is widely associated with cystic fibrosis and chronic pancreatitis. Studies estimate that around 85% of the exocrine pancreatic insufficiency is due to cystic fibrosis. The acquisition of Pancreaze product rights for the US market is expected to boost the revenue growth of Vivus in 2018. Vivus will make a payment of $135 million to Janssen for the acquisition of Pancrease rights in the US.
Vivus’s Qsymia received its first US FDA approval in July 2012. In the first quarter of 2018, Qsymia generated revenues of $9.6 million compared to $17.6 million in the corresponding quarter last year. Vivus reported Stendra/Spedra supply revenues of $1.7 million compared to $3.8 million in the first quarter of 2017.
Analysts’ recommendations for Vivus and its peers
The one analyst tracking Vivus has a “hold” rating on the stock. Vivus has a 12-month target price of $1.5, which represents a ~57.5% return on investment over the next 12 months.
Of the 29 analysts tracking Biogen (BIIB) in May, ~69% of the analysts recommended a “buy.” Of the 19 analysts tracking Alexion (ALXN), ~95% of them recommended a “buy,” while among the 23 analysts tracking BioMarin Pharmaceutical (BMRN), ~83% of them recommended a “buy.”
On May 20, Biogen, Alexion Pharmaceuticals, and BioMarin Pharmaceutical had consensus 12-month target prices of $350.04, $158.53, and $112.43, respectively, which represents ~24.8%, 30.9%, and 26.5% upside potential over the next 12 months.