Vivus returns to profit on Evamist gain

US company Vivus' second-quarter results showed a return to profit after last year's loss on an over five-times-higher revenue almost entirely due to royalty payments from KV Pharmaceuticals.

Total turnover reached $25.3 million for the quarter versus just $4.1 million in the same period of the year before, due to the recognition of $20.9 million in deferred license revenue earned from the sale of the Evamist novel estrogen transdermal spray to KV (Marketletter August 13, 2007). Product revenues, however, only increased marginally to $4.2 million from $4.0 million. The firm expects continued payments for the agent to have a significantly-positive effect on financial results until their completion, currently expected in May 2009.

Operating expenses doubled to $22.6 million vs $11.3 million due to costs related to advancing obesity drug Qnexa into Phase III trials. Nonetheless, the payment from KV swung the firm into a profit of $3.6 million, or $0.06 per share, vs a loss of $6.7 million, or $0.11 per share.