VIVUS, Inc. (NASDAQ:VVUS) investors celebrate a 14% gain in the stock this morning, after the company announced an agreement providing Metuchen Pharmaceuticals a fully-paid, perpetual license for exclusive rights to commercialize STENDRA® (avanafil) in the U.S., Canada, South America and India.
The parties simultaneously signed a commercial supply agreement pursuant to which VIVUS will be responsible for the manufacture and supply of STENDRA to Metuchen for a mutually agreed term. For a period of 180 days, Metuchen has the option to assume the manufacturing and supply rights of STENDRA for its territories. Under the license agreement, VIVUS received $70 million. Additionally, Metuchen will be responsible for royalties due to Mitsubishi Tanabe Pharma Corporation based on net sales.
STENDRA is an oral phosphodiesterase type 5 inhibitor. STENDRA was approved by the FDA in April 2012 for the treatment of erectile dysfunction in the United States and sold under the trade name SPEDRA in the European Union. VIVUSretains rights to receive royalties and milestones from the exclusive licenses to commercialize and promote SPEDRA with the Menarini Group in over 40 European countries plus Australia and New Zealand and with Sanofi in Africa, the Middle East, Turkey, and the Commonwealth of Independent States including Russia. Commercial rights remain available for Mexico and Central America.
“We are excited to announce our license agreement with Metuchen, who has commercial experience to take advantage of STENDRA’s clinical profile within the erectile dysfunction market. This agreement is the first announcement to arise out of the strategic business review process announced earlier this year,” stated Seth H. Z. Fischer, VIVUS CEO. “We are pleased to monetize our assets to maximize stockholder value and we look forward to providing additional updates on the on-going process.” (Original Source)
On the ratings front, WallachBeth Capital LLC analyst Caroline Palomeque maintained a Buy rating on VVUS, with a price target of $2.80, in a report issued on July 25. The current price target implies an upside of 145.6% from current levels. According to TipRanks.com, Palomeque has a yearly average return of -4.6%, a 67% success rate, and is ranked #3020 out of 4197 analysts.
VIVUS, Inc. operates as a biopharmaceutical company, which develops innovative, next-generation therapies to address unmet needs in obesity, diabetes, sleep apnea and sexual health. The company’s products include Qsymia Obesity, Qsymia Sleep Apnea, Qsymia Diabetes and Avanafil.