Will Qnexa Solve America's Obesity Epidemic?

• By the tickerspy.com Staff
• On 10:45 am EDT, Wednesday September 9, 2009

Vivus (NASDAQ: VVUS - News) drug Qnexa helped patients drop more than 35 pounds on average in a recent trial.

Mountain View, California-based Vivus Inc. announced this morning that its Qnexa drug helped patients reduce their weight by an average of 14.7% or 37 pounds in one late-stage trial. In an interview with CNBC, CEO Leland Wilson. Wilson was not hesitant to note the Qnexa's "blockbuster potential," but dodged the question when asked about possible big pharmaceutical marketing partners. Shares are trading higher by 70% on the news, and according to CNBC, analysts expect FDA approval of the drug to come in the latter half of 2010.

Vivus is also hoping to compete with Pfizer (NYSE: PFE - News), Eli Lilly (NYSE: LLY - News), and merger partners Merck (NYSE: MRK - News) and Schering-Plough (NYSE: SGP - News) with its Avanafil erectile disfunction treatment. The company saw positive phase II results and initiated phase III trials for the drug in December of 2008.

The massive Vivus rally is helping the Biotechnology Stocks Index extend its 7% monthly lead over the S&P 500. Jazz Pharmaceuticals (NASDAQ: JAZZ - News) and GenVec (NASDAQ: GNVC - News) are also helping the industry average with big gains.

Jazz is up by 1000% in the last three months, and has gained more than 1800% in the last six. The company announced in mid-June that its pain drug helped to reduce the main symptoms associated with fibromyalgia in phase III trials.

Gilead (NADSAQ: GILD) was the most popular biotech stock among professional investors at the end of the second quarter. At the end of Q2, 127 Pros held Gilead among their top-15 U.S.-listed positions. The stock is also found in tickerspy's Swine Flu Stocks Index, which is dedicated to equities engaged in the treatment and prevention of the H1N1 virus.

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