Vivus (VVUS) announced today that the company will carry its Q2 conference call tomorrow, August 6th, at 4:30 PM EST. The announcement gives shareholders and analysts alike very little advanced notice for a call that is of paramount importance to the company.
Last month a long and drawn out battle for control of Vivus came to a conclusion with First Manhattan winning control of the Board of Directors and ousting then CEO Leland Wilson in favor of First Manhattan choice Tony Zook. The change in the board and management makes this call a critical one for Vivus investors.
The street is expecting the company to report a loss of $0.44 per share on revenues approaching 12 million, though many analysts have not updated in quite some time. While the numbers are indeed important, this time, they are actually secondary to investors getting some flavor on the future path of Vivus under a new direction.
What I anticipate on the call is a lot of discussion about how current management is shifting focus to partnerships, deals, and a "re-launch" of the anti-obesity drug Qsymia. This discussion will be coupled with discussion about the search for a partner in the United States for the erectile dysfunction drug Stendra, highlighting a supply and manufacturing deal that was recently announced.
Analysts will indeed want to understand the sales of Qsymia during Q2, which should show a stark improvement from the $4 million in revenues from Q1, but the story is more so about the anticipated directions and actions the company will take moving forward.
Essentially, this call will be a showcase for what is going to come rather than a look at the past. It will be very interesting to see exactly how the equity responds, as for many, patience could be wearing thin. Current management needs to offer a compelling story to bolster confidence. With competitor Arena Pharmaceuticals (ARNA) now selling Belviq, the marketplace is a bit more crowded for Vivus than it used to be. Stay Tuned!
Additional disclosure: I have no position in Vivus.