Jefferies Remains Cautious On Vivus Pending Qnexa Approval

Jefferies & Co. has published a research report on Vivus, Inc. VVUS and is showing concern over the fact that the company has not yet obtained all the necessary data to combat the FDA's letter, focusing mainly on CV events. In the report, Jefferies writes "We remain concerned that VVUS may not have the data necessary to address the FDA letter, particular the question on major CV events. We believe the stock price does not reflect the risk of a potential significant delay from a requirement for new safety studies. On the management call to discuss the FDA complete response letter (CRL) for Qnexa, its lead drug candidate for obesity, we were surprised to learn that VVUS is declining the standard post-CRL meeting with the FDA and plans to directly resubmit in six weeks." Jefferies maintains its Underperform rating and $3 price target. Vivus closed Friday at $7.75.