NEW YORK (AP) -- Vivus Inc. shares jumped Tuesday as the obesity drug developer prepared to report its second-quarter results and discuss its marketing plans for its weight loss drug Qsymia after the market close.
THE SPARK: The Food and Drug Administration approved Qsymia in July. The drug isn't on sale yet, but the Mountain View, Calif., said it will share its commercial plans for the drug during its conference call with analysts and investors. Vivus plans to start marketing Qsymia before the end of 2012, and could do so on its own or through a partnership with a larger drugmaker.
Analysts expect Vivus to post a loss of 23 cents per share on $800,000 in revenue, according to FactSet.
THE BIG PICTURE: The FDA has approved two new obesity drugs this year, and while Arena Pharmaceuticals Inc.'s Belviq was approved a few weeks before Qsymia, Qsymia is expected to reach the market first. Clinical trials of the drugs also indicated that Qsymia was more effective. Belviq and Qsymia were the first long-term weight loss drugs to get marketing approval in more than a decade.
SHARE ACTION: Vivus shares advanced $1.92, or 9 percent, to $23.13 in afternoon trading. The stock has doubled in value since mid-February, when an FDA advisory panel recommended that that Qsymia be approved.