Vivus (NASDAQ:VVUS) Shares Plunge on Qnexa Delay

Concerns by the FDA over Qnexa, have resulted in a delay, which has resulted in the share price of Vivus (NASDAQ:VVUS) getting hammered today.

Canaccord says, "While the delay is a modest disappointment, our launch projection for 2012 is not significantly affected. Broadly, we believe FDA concerns with Qnexa will ultimately be resolved with REMS and post-approval studies. We would continue to be buyers of the stock, particularly on weakness."

Canaccord Genuity maintains a "Buy" rating on Vivus (VVUS), which was trading at $8.72, plunging $1.71, or 16.40 percent, as of 2:39 PM EST. Canaccord has a price target of $15 on Vivus.

Vivus (NASDAQ:VVUS) Riding Wave of 'Contrave' Support?

With Orexigen Therapeutics (Nasdaq:OREX) finding support for 'Contrave,' prospects for Vivus (NASDAQ:VVUS) being approved for Qnexa seems to have improved.

Even so, Jefferies (NYSE:JEF) has waved a cautionary flag with Vivus, citing uncertainties over potential and probably delays.

They said, "While there is no denying that the OREX panel vote increases the prospects of Qnexa approval, we remain uncertain how to predict the FDA's next action in response to the panel vote. With VVUS shares indicated up significantly, current exuberance may not reflect the risk of a potential delay."

Jefferies maintains an "Underperform" on Vivus, which closed Wednesday at $9.00, up $1.20, or 15.38 percent. They lowered their price target on them from $4 to $3. Volume was almost six times the normal 3-month daily average.