Vivus plummets as early sales of obesity drug Qsymia disappoint

US biopharma company Vivus (Nasdaq: VVUS) saw its shares plunge 24% to $11.38, after reporting third-quarter 2012 financial results, showing that its recently launched weight management drug Qsymia (phentermine and topiramate extended-release) delivered weak sales of just $41,000 in the final month, after a September 17 launch, compared with analysts’ average expectations of about $310,000, according to Thomson Reuters.

Qsymia, along with Arena Pharmaceuticals’ Belviq (lorcaserin, which has yet to come to market as it awaits classification from the Drug Enforcement Agency), became the first new diet pills to receive marketing approval from the US Food and Drug Administration in around 13 years.

For the third quarter, Vivus recognized net product revenues of $41,000 from prescriptions shipped from certified pharmacies to patients. Given the lack of history in selling Qsymia, the company will recognize revenue on the sell-through method, that is, revenue is recognized as prescriptions are shipped to patients.