Tuesday, February 25, 2014
Trade Updates - Vivus, Sunesis Pharma
Vivus announced earnings after the market closed last night and they lived up to expectations with another quarter of disappointing sales of it's obesity drug Qsymia. This was followed by downgrades by JP Morgan and Bank of America which has sent the stock down over 12% for the day. The positive highlights was the licensing revenue generated through it's three partnerships for it's erectile dysfunction drug Stendra. I purchased another 1,000 shares of Vivus to increase my position to 6,000 shares as I believe a partnering agreement or buyout is inevitable in the near term. There's no way that Vivus will be able to compete on it's own between Arena's Belviq and after Orexigen's Contrave is approved in a few months. Management knows this, analysts know this, and investors know this. Management has already inked three deals for Stendra in the past year so I have confidence in their ability to close a deal.
Sunesis had it's price target raised to $14 share by Leerink. The company has a drug in a phase 3 trial to treat AML and expects to report results mid-year. The stock had jumped over 20% at one point this morning so I sold my 2,000 shares to take the gain and expect the stock to drift back down which will provide another buying opportunity (I sold at $6.21 and the stock has already settled down to $6.11 so I expect to get in again below $6 with plenty of time for the pre-result run-up later in the year).