Vivus Shares Rise on Possible Drug Approval

By Christopher Walker
Oct 30 2010

Vivus, a drug maker, has seen a significant increase in share prices over the past two days based on optimism that their new weight loss drug will gain FDA approval.

 The drug, Qnexa, has been delivered to the FDA who has said that they may not require any additional clinical trials for the approval.

This news has increased the overall opinion of Vivus in the market thus far. For years drug manufacturers have sought to develop a weight loss drug that would be effective and safe for use. This would tap into billions of dollars that are spent on weight loss products each year.

Recently the FDA denied approval for two other drugs that were submitted. The drugs were denied approval based on potential side effects and the lack of effectiveness that both have shown in clinical trials.

Qnexa was set to gain approval last week when the FDA asked for more data. However, they did say that further clinical trials were not necessary but they did want more data on the possible heart related issues that can face women taking the drug who are of childbearing years.

If Qnexa is approved it would be the first mass market weight loss drug that has been approved by the FDA and could potentially unlock the market that has remained in the hands of the natural supplements and over the counter medications.

The FDA is expected to act on the approval within the next week.