FDA Advisory Panel Approves Diet Drug

Things are looking up f0r drug maker Vivus’s (VVUS) efforts to get its experimental obesity drug approved by U.S. regulators.

An FDA advisory panel voted 20 to 2 in favor of recommending approval of the weight-loss drug Qnexa.

The panel’s decision boosts the chances that U.S. regulators could approve a new prescription-weight loss drug for the first time in more than a decade. A panel vote typically precedes a final decision by the agency, which traditionally follows the panel’s advice.
The FDA rejected Qnexa in 2010 amid safety worries.

How the decision hits Vivus’s share price remains to be seen. The shares were halted today, but at $10.55 at Tuesday’s closing bell, the stock has climbed 40% over the last 12 months.