Investors Give Thumbsdown To VIVUS Inc. (NASDAQ:VVUS) & Solazyme Inc. (NASDAQ:SZYM)
Pharmaceutical company VIVUS Inc. (NASDAQ:VVUS) recently announced its 3Q13 earnings for the quarter ended September 30, 2013. The company is primarily commercializing its anti-obesity product, Qsymia which was made available in certified home delivery pharmacies in September 2012 and in certified retail pharmacies in July 2013. Currently it is available at more than 31,000 retail pharmacies across the nation.
The company reported net revenue from Qsymia sales at $6.4 million during 3Q13. In addition the company also reported $21 million license revenue from commercialization agreement with Menarini which was signed for promotion and commercialization of SPEDRA (indicated for erectile dysfunction) in more than 40 European countries as well as in Australia and New Zealand.
VIVUS Inc. (NASDAQ:VVUS) reported net loss of $48.2 million during 3Q13 that translates to net loss of $0.48 per share and compares to net loss of $40.4 million or $0.4 per share during 3Q12. The increase in net loss was attributable to higher SGA (selling, general and administrative) expenses and increased interest expense and also to non-recurring charges related to the proxy contest in relation to 2013 Annual Meeting of Stockholders.
As a part of the proxy contest, the company spent $2.9 million of severance charges in relation to resignation of its former President and Chief Executive Officer, fees and related expenses worth $5.1 million and non-cash share-based compensation expense of $12.7 million related to automatic acceleration of vesting of certain employees held unvested stock options. However these increases were partly offset by license revenue of $21 million.
VIVUS Inc. (NASDAQ:VVUS) reported cash, cash equivalents and related securities of total $346.4 million as at September 30, 2013 compared to $214.6 million reported at December 31, 2012.
Following the results, the stock plunged around 12.5% during the trade on Wednesday. Solazyme Inc. (NASDAQ:SZYM) was the other such stock to lose over 15.25% following the 3Q13 earnings release. Despite the reported steady growth in revenue Solazyme failed to ensure investor confidence as it announced the delay in production at its Brazilian plant by a quarter.