Vivus: High Upside Potential From Strong Pipeline
Smart investors know that a company’s pipeline is one of the best predictors of its future success, especially when it comes to biotech investing. The more products in the pipeline, the less likely you are to face a loss if one thing does not work out. When you are considering an investment, research the company’s pipeline and get a feel for what its products target. If a company has a combination of numerous products in the works, as well as products that target a broad market, it is likely a smart investment.
Vivus (VVUS) is a great example of how a broad market approach can be a good investment strategy. The current price is just under $23, but it is expected to steadily increase of the next decade. This is because the two products in its pipeline focus on medical issues that are expected to worsen during that time.
Qnexa is the bread and butter of Vivus. The drug is intended to treat obese adults and, therefore, prevent a myriad of obesity related illnesses. Vivus saw a bit of a surge recently, in response to a report issued by the Organization for Economic Cooperation and Development (OECD) concerning obesity and health. The OECD predicts that 75% of Americans will be obese by 2020. Though there are no guarantees, nobody is predicting people will rush to reverse this trend and there will easily be a need for an obesity drug such as Qnexa in the next several years. To continue reading, click here.