Diamonds and Dogs
9/21/12Vivus Inc. (VVUS)
Vivus Inc. is weighing down shareholders today, down 11.47% at $21.00. The diet drug company saw its shares drop sharply after news was released that the European Union would most likely reject their drug. The formal decision on Qsiva is not expected until October, but the company said Friday "preliminary feedback" from the European Medicines Agency's panel didn't look good. It won U.S. Food and Drug Administration approval in July, and went on sale earlier this week, becoming the first long-term prescription weight loss drug to reach the market since 1999. If Qsiva is denied by the EU health agency, Vivus could appeal the decision and resubmit an application. Even with a large down day, the company is still up 111% year to date.
KB Home (KBH)
KB Home is painting its stock green today, up 16.25% at $15.24. The homebuilding company saw its shares build up their gains after releasing an unexpected third quarter profit. Net income for the three months through August was $3.3 million or $0.04 per share, compared with a loss of $9.6 million or $0.13 per share last year. Analysts were expecting a loss this quarter of $0.15 per share. The company's revenue for the third quarter jumped 16% from a year earlier to $424.5 million, with home deliveries up 7%. KB Home benefited from tax and insurance-related gains, as well as higher sales amid a U.S. housing market recovery. Today, KB Home set a new 52-week high by about $1.50, and traded at 6 times its average volume.