VIVUS, Inc. (NASDAQ: VVUS) is having an overwhelmingly strong start to the trading session this morning after announcing that it has entered into a definitive agreement to acquire all rights to a commercially available product. Of course, the expansion of the company’s commercial portfolio is exciting news for investors who are pushing the stock toward the top. Today, we’ll talk about:
- The acquisition;
- what we’re seeing from VVUS as a result;
- and what we’ll be watching for ahead.
VVUS Heads For The Top On Acquisition Agreement
As mentioned above, VIVUS is having an incredibly strong start to the trading session this morning after announcing that it has entered into a definitive agreement to acquire product rights. According to the press release issued by the company, it has entered into an agreement to acquire all rights surrounding PANCREAZE® (pancrelipase) Delayed-Release Capsules in the United States and Canada. VVUS will be acquiring these rights from Janssen Pharmaceuticals, Inc. In a statement, John Amos, CEO at VVUS, had the following to offer:
We are very pleased to announce the acquisition of the PANCREAZE product rights for the U.S. and Canadian territories. The acquisition, coupled with today’s announcement to restructure a portion of our convertible debt with Athyrium Capital Management, are demonstrations of our plan to create a stronger and more financially capable VIVUS… We hope that the combination of a new product for us to promote along with the strengthening of our balance sheet will serve as initial stepping stones in our value creating strategic vision. The VIVUS senior management team plans to leverage the Company’s existing operating infrastructure in the promotion of PANCREAZE. We intend to drive revenue in the future through innovative sales and marketing of our current product portfolio, disciplined product acquisition, strong product life cycle management and focused expense management.
What We’re Seeing From The Stock
With the news of the agreement to acquire rights to PANCREAZE, it’s no surprise to see that VIVUS is headed for the top in the market this morning. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:45), VVUS is trading at $0.46 per share after a gain of $0.094 per share or 25.61% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on VVUS. In particular, we’re interested in following the acquisition of PANCREAZE. While the agreement is a definitive one, it is still subject to customary closing conditions. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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