Vivus ends quarter with $18.9 million of cash

By Angela McDaniels

Seattle, Oct. 26 - Vivus, Inc.'s cash and cash equivalents shrank by 15% during the third quarter to $18.9 million at Sept. 30 from $22.2 million at Dec. 31, 2005, according to a company news release.

Including available-for-sale securities, the totals were $26.3 million at Sept. 30 and $27.0 million at Dec. 31, 2005.

The company said the cash it generated during the first nine months of the year - including $12 million of proceeds from its direct placement of stock in May - was offset by the $23.4 million of cash it used in operations, investment and other financing activities.

Total revenue for the third quarter increased by 21% to $4.0 million from $3.3 million for the third quarter of 2005.

Vivus said the increase was due primarily to an increase in domestic shipments of MUSE, which in turn was a result of fluctuations in inventory levels at the wholesale level. Domestic demand for MUSE at the retail and government level remains consistent with prior periods, according to the release, averaging roughly 200,000 units per quarter.

For the three months ended Sept. 30, Vivus reported a net loss of $6.2 million, or $0.13 per share, compared with a net loss of $6.0 million, or $0.13 per share, for the prior-year period.

Total revenue increased by 59% to $8.9 million for the nine months ended Sept. 30 from $5.6 million for the same period of 2005. Vivus attributed this increase primarily to increased domestic and international shipments of MUSE.

The net loss was $20.8 million, or $0.45 per share, for the first nine months, compared with a net loss of $23.4 million, or $0.55 per share, for the same period of 2005. The smaller net loss was primarily the result of increased MUSE revenues and decreased research and development spending, according to the release.

In September, Vivus submitted a New Drug Application with the Food and Drug Administration for its investigational estradiol drug, EvaMist, a once-a-day transdermal spray for the treatment of vasomotor symptoms associated with menopause.

Also in September, the company announced that Alista (topical alprostadil) - its investigational drug for the treatment of female sexual arousal disorder in women who have undergone a hysterectomy - did not show a statistically significant improvement over a placebo for the primary endpoint of a phase 2b clinical study. Given the higher-than-expected placebo response in this study, Vivus said Alista will receive a lower development priority than other investigational products in the pipeline.

Vivus is a pharmaceutical company based in Mountain View, Calif., that develops products for the treatment of sexual disfunction and obesity.

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