blankers, somebody on the thread solicited opinions on the conference call. I was offering simply one man's five cents' worth - OK we're in defaltion, reduce that to two cents.
Part of due diligence is an assessment of management's capabilities. One necessary attribute of a CEO is PR, and in this case specifically investor relations. So, I hear a CEO who is not at all sympatico, who comes across with more bluster than substance. A completed character assassination won't help at this point.
We have to understand that the only thing going for Vivus is time, not any technological advantage or patent rights. There is no rocket science here - formulation into a suppository vehicle, sterile packaging into foil wrapped six packs - these are all mature processes. Two other manufacturers are marketing the same substance. And New Jersey is packed with good ole Yankee know-how and can-do. There is no startup bottleneck for any potential competitor. What Vivus has, and they have done well, is a significant lead in the creaky and frustrating regulatory process. I hate to see them stumble on simple people problems and blow that lead.
"Exhausted shift workers", "slow learning curve", are two of those people problems with relatively cheap and quick fixes. Can you imagine, say Pfizer, putting on a conference call and coming out with that sort of lame explanation? Heads would roll, and instantly.
So, first things first - management need to throw the whole kitchen sink at doing what it takes to complete that regulatory approval before considering using money on stock buybacks. Of course they should make contingency plans for the release of Viagra, but keep on sticking to their knitting. |
