VIVUS, Inc. (VVUS), AstraZeneca plc (ADR) (AZN): Great Job, Now You’re Fired

Best-case scenario for investors is that the new management is able to find help from a large pharma partner that can put a little more muscle behind the launch.

VISUS’ direct competitors in the obesity space both have large partners.  Arena Pharmaceuticals, Inc. (NASDAQ:ARNA) secured a marketing deal with Eisai Co., Ltd (ADR) (OTCMKTS:ESALY) to market Belviq, and Orexigen Therapeutics, Inc. (NASDAQ:OREX) will have help from Takeda Pharmaceutical Company Limited (TYO:4502) once its obesity drug Contrave is approved.

Both companies got $50 million up front, over $1 billion in potential milestone payments, and royalties in deals signed before their drugs were even on the market. Presumably, VIVUS could get even more now, because it has an approved drug.

It isn’t clear exactly why VIVUS didn’t sign a post-approval marketing deal. My best guess is the company couldn’t get the terms that management thought it deserved. We’ll have to wait and see if the new management is willing to settle for less, or can drive a better deal.

The article Great Job, Now You’re Fired originally appeared on Fool.com is written by Brian Orelli.

Fool contributor Brian Orelli has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

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