As VIVUS (VVUS) launches its new weight-loss drug, Qsymia, and Arena Pharmaceuticals (ARNA) prepares for its 2013 launch of competitor drug, Belviq, I thought I’d do a little compare and contrast on the two companies.
Some Numbers
Prior to the launch of Qsymia, VIVUS has reported no revenue, but with this launch and the approval of its other drug, STENDRA, we should suspect to see revenues soon. Arena has recorded revenues over the past few years and even reported positive operating income last quarter.
Also, VIVUS has a bounty of current assets that can easily cover its tiny debts, but that makes me wonder if it’s using its assets properly. I think Arena’s doing a better job managing assets and liabilities as it has enough assets to cover liabilities but is still making investments in longer term assets.
The Products
Though VIVUS launched its product first, Qsymia has some significant safety risks. Will Belviq have significant risks as well? Also, how much will doctors prescribe of weight-loss drugs, especially in the wake of fen-phen? Only time will tell.
Both companies have other drugs in the pipeline, so it will be interesting to see how both companies fare in the future. I’ll be watching!
