Vivus Gets FDA Green Light for Obesity Drug, Stock Pops 4.8%

Vivus (NASDAQ:VVUS) has been allowed by the FDA to seek approval for an initial indication that excludes obese women of child-bearing potential. This comes after a similar drug of one of its competitors Arena Pharmaceuticals (NASDAQ:ARNA) was rejected by the FDA in October citing the risk of heart problems posed by the drug.

Vivus shares closed up over 4.8% to $8.88. The company has yet to generate significant sales and earnings. On the technical front, shares trade well above their rising 50 and 200 day moving averages. The MACD is bullish while RSI is pointing up at 68.