Weight-Loss Drug Data Lifts Vivus Stock Above 200-Day

VVUS' upside is being contained near a key level, though

by Karee Venema

Published on Aug 20, 2019 at 3:15 PM
Updated on Aug 20, 2019 at 3:15 PM

Stocks are trading lower today as Treasury yields cool. Among individual stocks making notable moves are pharmaceutical firms Endo International PLC (NASDAQ:ENDP) and Vivus, Inc. (NASDAQ:VVUS), as well as acoustic shockwave technology name Soliton Inc (NASDAQ:SOLY). Here's a quick look at what's moving the shares of ENDP, VVUS, and SOLY.

Endo International Stock Eyes Best Day in a Year

Endo International is near the top of the Nasdaq this afternoon, up 21.2% at $3.09 -- headed toward its biggest one-day percentage gain since last August. The company said it will pay $10 million to settle an opioid case before it heads to federal court in October. The trial consolidates thousands of lawsuits that accuse drugmakers of fueling the opioid epidemic through deceptive marketing tactics, though ENDP's settlement includes no admission of wrongdoing.

ENDP stock's long-term trajectory has been lower, with the shares down 80% year-over-year, and hitting a record low of $2.14 as recently as Aug. 15. Plus, today's upside is being contained by the equity's 40-day moving average, which has guided Endo International stock lower since early March.

Short sellers have been in the driver's seat during the stock's slide, too. Short interest is up 75% since mid-February, with bears in control of 14.3% of the security's available float.

Vivus Stock Up After Qsymia Data

Vivus earlier unveiled positive data from a pilot clinical study of its weight-loss drug, Qsymia. In reaction, VVUS stock is 16.2% higher today at $3.95, set to close north of its 200-day moving average for the first time since Feb. 20. However, the rally is stalling near the $4 mark, which has kept a tight lid on the shares since April.

Today's bull gap has sparked a rush of activity in Vivus' typically quiet options pits. Amid light absolute volume, calls are crossing at 21 times what's typically seen at this point. Most of the action has centered at the September 5 call, where it looks like new positions are being purchased. If this is the case, call buyers are betting VVUS stock will break out above $5 over the next five weeks.

Soliton Soars on Upbeat Cellulite Treatment Data

Soliton shares are up 13.4% to trade at $12.55, after the company said preclinical data showed longer treatment times for its Rapid Acoustic Pulse (RAP) device -- currently approved by the Food and Drug Administration (FDA) for tattoo removal -- were successful in reducing the appearance of cellulite. Nevertheless, the stock is running out of steam in the $13-$14 region, home to its 40-day and 80-day moving averages.

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