Biotech Values

[DewDiligence]

Matt Herper’s (cautious) take on VVUS:

http://www.forbes.com/sites/matthewherper/2012/02/23/use-caution-after-vivus-victory

One other factor should make investors nervous: much of the value of FDA approval may be baked in. It’s not impossible, in the wake of a short squeeze, that Vivus stock is closing in on what will be its peak. FDA approvals, though great news, make bad stock catalysts because they are often widely expected. Approval results in a gradual rise in a share price, rejection a sharp drop. I’m not saying to short Vivus, but I do hope fans of the company are taking some profits today.