Erectile Dysfunction Drug Can Be Money Spinner For VIVUS Inc (NASDAQ:VVUS)
VIVUS, Inc (NASDAQ:VVUS) had manufactured an erectile dysfunction drug that had received approval 1 ½ years ago. However, it had never reached the United States shelves. This drug will now get the company a $30M upfront-payment from a certain licensing deal with Auxilium Pharmaceuticals Inc.
A larger deal
This payment is only a segment of what could eventually turn out to be a deal worth $300M. This will be based on sales and regulatory milestones. If the United States Food drug Administration agrees to makes slight changes to the drug label, VIVUS, Inc (NASDAQ:VVUS) might end up receiving $15M. This is an oral drug called Stendra (avanafil). It is designed to increase the flow of blood into the penis and has to be consumed 30 minutes before the act. However, another study that had been conducted by the company indicated that it might even take effect within 15 minutes after consumption.
The drug had won approval in 2012 April but the company had not sold it either in Canada or the U.S. Under the deal, these areas are Auxilium’s territories. The companies said that the shipments of this drug might commence in December.
In Friday’s trading, VIVUS, Inc (NASDAQ:VVUS) rose by 8.45%. The opening price of the shares was $10.79, which climbed to an intraday high of $11.44 and dipped to a close of $11.19. Approximately 6.40 million shares were traded on Friday while an average volume of 3.20 million shares were traded over a 30 day period. The 52-week low of VIVUS, Inc (NASDAQ:VVUS) shares is $9.11 and its 52-week high is $23.59. The company has a market capitalization of $1.13 billion.
About the company
VIVUS, Inc (NASDAQ:VVUS) is a bio-pharma company. It is involved in commercializing and developing therapies that address the unmet needs in obesity, sleep-apnea, sexual health and diabetes.