VIVUS, Inc. (NASDAQ:VVUS) released its latest quarterly earnings before opening bell this morning, reporting net losses of 53 cents per share of $53.6 million. That’s compared to net losses of $18.8 million or 20 cents per share in the same quarter a year ago. Net product revenues from sales of the company’s weight loss drug Qsymia were $4.1 million for the quarter. Analysts were expecting the company to report losses of 52 cents per share on $5 million in revenue. John Burbank is probably not happy with the news.
VIVUS’ Progress On Qsymia Sales
The pharmaceutical company attributed this year’s first quarter losses to greater selling, general and administrative expenses as it commercialized its drug Qsymia. VIVUS, Inc. (NASDAQ:VVUS) also took a $5.8 million charge to write off inventory in excess of demand.
The company said Qsymia has a 24-month shelf life, so it had to write off the excess product. It also said that it had more stability data supporting a longer shelf life, so it has applied to extend that shelf life to 36 months for current and future production of the drug.
VIVUS Enters Into A Purchase And Sale Agreement
The pharmaceutical company also said it entered into an agreement with BioPharma Secured Investments III Holdings Cayman in March of this year. At the first closing, VIVUS, Inc. (NASDAQ:VVUS) received $50 million, minus $1.1 million in funding and facility payments. The company may choose to receive $60 million more by the end of this year, minus a funding payment of $600,000 at the secondary closing.
Other Major Developments For VIVUS
The company said in April, the Food and Drug Administration agreed to allow Qsymia to be distributed through certified retail pharmacies. It said that it intends to certify pharmacies and announce the drug’s availability in the third quarter of this year.
VIVUS also said it’s expecting a final decision from the European Commission regarding authorization for the company to market its erectile dysfunction drug SPEDRA in the European Union.
Shares of VIVUS, Inc. (NASDAQ:VVUS) plunged before opening bell this morning, falling as much as 6.15 percent in premarket trading.