By Joseph Walker
Vivus Inc. (VVUS) reported a 67% increase in prescriptions for
the weight-loss drug Qsymia, helped by a promotion that began in
November to give patients the first two weeks of their
prescriptions for free.
The jump in prescriptions may not translate into higher
revenues, depending on how much was driven by the free promotion,
but it is a sign that more consumers are experimenting with the
drug and could become repeat customers.
The company said in a regulatory filing Monday that 12,978
prescriptions were shipped to patients over a four-week period
ended Dec. 21, up from 7,749 the previous month. The announcement
sent Vivus shares up as much as 13% to $15.54, a two-month
high.
Vivus has been under pressure from investors since it launched
the drug in September as early sales disappointed and rivals moved
closer to launching competing therapies. Vivus faces multiple
challenges, including FDA restrictions on its distribution and a
lack of insurer reimbursement.
The promotion program blunts the initial prescription price for
new patients, which costs around $160 per month. Just 20% of
patients have the prescription covered by their insurance programs,
Vivus has said, leading to about a third of patients to forgo
buying the drug.
In the filing Monday, Vivus noted that the new prescription
numbers had been provided by a third party and should be viewed
with "caution" by investors. The numbers may be adjusted in the
future, the company said.
Around 78 million U.S. adults are obese, according to the
Centers for Disease Control and Prevention. Some investors had
feared that Vivus was not prepared to take advantage of the obesity
market's potential, and shares were cut in half between September
and November.
Investor confidence has rallied over the past month, though, as
Vivus said Express Scripts Holding Co. (ESRX), one of the nation's
largest prescription drug plan providers, would reimburse the
drug.
The stock recently rose 10% Monday to $15.14.
Potential competitor Orexigen Therapeutics Inc. (OREX) said
Monday that the Food and Drug Administration had agreed to a data
evaluation process that should allow the company to seek approval
for its obesity drug later this year and receive a decision by
early 2014.
Orexigen shares rose two cents to $6.06.
Rival Arena Pharmaceuticals is awaiting clearance from the Drug
Enforcement Administration to begin selling its own obesity drug,
Belviq, which could come as early as this month.
Arena shares rose 1% to $9.11.
Write to Joseph Walker at Joseph.Walker@dowjones.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires