Shares of Vivus Inc. VVUS, +9.34% rallied 6.6% to trade above the $5 mark in volatile morning trade Tuesday, after the biopharmaceutical company's 1-for-10 reverse stock split went into effect. The stock has been down as much as 12% at a split-adjusted intraday low of $4.15 and up as much as 18% at a high of $5.58 since the open. The stock had closed Monday at 47 cents on a pre-split basis. Vivus Chief Executive John Amos had said it enacted the split because it determined it would position the company with the "appropriate liquidity associated with listing shares on a major U.S. exchange," which Amos said was "critical" for the execution of its strategic plan to return to profitability. One of the Nasdaq's requirements for continued listing is a minimum bid price of $1 for a company's stock. Vivus shares have tumbled 43% over the past three months, while the iShares Nasdaq Biotechnology ETF IBB, -0.42% has gained 6.4% and the S&P 500 SPX, +0.37% has tacked on 3.4%.
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