Tuesday, July 13, 2010
Qnexa, Vi Vi Voom
The weight loss drug Qnexa is going to be reviewed by the FDA Endocrinologic and Metabolic Drug Advisory Committee this week. This review by outside panelists is heavily relied upon by the Administration. Generally a positive report leads to drug approval.
Qnexa is a combination of two drugs, already FDA approved for different usages. Nonetheless, the safety profiles for these drugs have a positive track record with an asterisk for phentermine. The more salient issue is whether Qnexa will be effective as a weight loss medication. The advantages and disadvantages are nicely summarized, http://seekingalpha.com/article/214170-vivus-arena-and-orexigen-investors-all-worried-about-qnexa-fda-panel-review?source=yahoo.
Vivus (VVUS) has already enjoyed a nice pop in anticipation of Qnexa's approval. If the drug gets a favorable review this week, the price will most assuredly jump again. Is it time to take a position? The fatty market in the US and the world offers huge profit potential for this product. A final FDA decision is likely in October, but the upcoming panel proclamation is likely to be the fulcrum of opportunity. You in?