Diamonds and Dogs
11/6/12Weight-Loss Battle: Healthy Eating or Obesity Drug?
Vivus Inc. (VVUS)
Vivus Inc.'s shares are slimming down today, down 23.61% at $11.42. The biopharmaceutical company (well known for its obesity drug) saw its shares get liposuction after a bad third-quarter earnings report. Vivus saw its loss amount to a substantial $40.4 million. That is over four times its loss a year ago, which was $8.6 million. The company's stock hit $31.21 after news was released that the obesity drug, Qsymia, was approved for sale in the United States. The drug was expected to be a huge revenue boost for Vivus; however it has shown a horrible debut, amounting only $41,000 in revenue. Vivus is facing some tough competition from Arena Pharmaceutical, who also has an obesity drug in the market, and has found a partner to help with marketing. Vivus is still above it 52-week low of $8.60.
Weight Watchers International Inc. (WTW)
Weight Watchers lost the pounds that were holding it down today, helping the stock jump 16.00% to $55.08. The weight management service company saw its shares skyrocket after a positive earnings report. Weight Watchers announced that EPS rose 10% to $1.20 per share, beating analyst estimates of $1.07 per share. Furthermore, the company also saw its subscriber base grow 20% to 2 million people. Weight Watchers seems to be showing that investors think that healthy eating is a better choice for weight loss than the drugs that have recently come to market. The company is still well off of its 52-week high of $82.91, but has gained a large portion back today.
Diamonds and Dogs market commentary is a journal of daily observations on anything that happens to be of interest to our author. Obviously, our primary focus is the stock market and world economic events, but for this page we have no defined topics. We want this page to be dedicated to the interests, concerns, and possibly to the financial gain of our clients and friends. All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.