Diamonds and Dogs


Weight-Loss Battle: Healthy Eating or Obesity Drug?

Vivus Inc. (VVUS)

Vivus Inc.'s shares are slimming down today, down 23.61% at $11.42. The biopharmaceutical company (well known for its obesity drug) saw its shares get liposuction after a bad third-quarter earnings report. Vivus saw its loss amount to a substantial $40.4 million. That is over four times its loss a year ago, which was $8.6 million. The company's stock hit $31.21 after news was released that the obesity drug, Qsymia, was approved for sale in the United States. The drug was expected to be a huge revenue boost for Vivus; however it has shown a horrible debut, amounting only $41,000 in revenue. Vivus is facing some tough competition from Arena Pharmaceutical, who also has an obesity drug in the market, and has found a partner to help with marketing. Vivus is still above it 52-week low of $8.60.

Weight Watchers International Inc. (WTW)

Weight Watchers lost the pounds that were holding it down today, helping the stock jump 16.00% to $55.08. The weight management service company saw its shares skyrocket after a positive earnings report. Weight Watchers announced that EPS rose 10% to $1.20 per share, beating analyst estimates of $1.07 per share. Furthermore, the company also saw its subscriber base grow 20% to 2 million people. Weight Watchers seems to be showing that investors think that healthy eating is a better choice for weight loss than the drugs that have recently come to market. The company is still well off of its 52-week high of $82.91, but has gained a large portion back today.

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