FDA Panel Rejects VIVUS, Inc. Diet Drug

BOSTON (MarketWatch) -- An advisory panel of the U.S. Food and Drug Administration has refused to recommend Vivus Inc.'s /quotes/comstock/15*!vvus/quotes/nls/vvus (VVUS 12.11, 0.00, 0.00%) diet drug Qnexa for approval, according to Dow Jones Newswires. Citing various safety concerns, the panel narrowly rejected recommending the product, which had been shown in studies to be effective in helping overweight and obese people lose weight. While the FDA is not bound to the recommendations of its panels, it generally follows them. Shares of Vivus had been bid up considerably in recent months in anticipation of Qnexa's approval. Vivus shares were halted Thursday pending the outcome of the FDA meeting.