Boston, MA 05/14/2013 (wallstreetpr) – Amid intense criticism from shareholders on the poor strategy for marketing its obesity drug, Vivus Inc. (NASDAQ:VVUS) (closed: $13.50, Up by 4.17%) had now added two members to the board of directors. J.Martin Carroll and Jorge Plutzky had joined the board of the Mountain View, California based drugmaker, Vivus Inc. (NASDAQ:VVUS) This new addition to the board increases its total strength to nine.
Criticisms on marketing strategy
The shareholders of Vivus Inc. (NASDAQ:VVUS) had for long criticized the company for not adopting appropriate marketing strategies to promote its obesity drug, Qsymia. Despite being approved by the Food and Drug Administration of United States in July, 2012, the board of Vivus Inc. (NASDAQ:VVUS) had not taken any effective steps to promote the use of drug to the consumers.
First Manhattan Co., the largest shareholder of Vivus Inc. (NASDAQ:VVUS) had criticized this lethargy on the company’s side and demanded the sizing down of six members of the board. In addition, QVT Financial LP, the third largest holder of Vivus Inc. (NASDAQ:VVUS) demanded sale of the company.
Shares Drop
The share price of Vivus Inc. (NASDAQ:VVUS) had declined by 53 percent since the obesity drug, Qsymia was approved by US regulators. The Chief Executive Officer of the company however ascertains that complete turnover of the board of Vivus Inc. (NASDAQ:VVUS) at this time would result in jeopardizing the company’s strategic attempts to increase sales and would thereby not be in the interest of the shareholders.
