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Biotech / Medical : VVUS: VIVUS INC. (NASDAQ)

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To: Brian Pastor who wrote (3034)12/7/1997 11:42:00 AM
From: RT  Read Replies (1) of 23519
 
--< You are looking at only half of the equation by looking at capacity. You need to also look at demand. If demand keeps up with capacity , then let them put as many factories on-line as possible.>--

Brain,

I agree totally in that scenario. My earlier post addressed the issue at how fast Vivus was going to expand the capacity of the new plant in N.J.. Six months to increase production 10O% is a slow timetable if your max capability is a 400% increase from current levels.
Here we have a 90,000 sq. ft plant that will increase capacity by 400% when fully utilized. According to VIVUS's management it will be operating at only " 20%" capacity by mid 98. Unless they increase PRODUCTION and DEMAND by an additional 80% by year end they will not need a second facility in Ireland until a much later date.

Spending 25 Million for a 90,000 sq. ft plant in Ireland due to be completed by 98 year end may be a bit premature unless the NJ facilites becomes capacity restrained.

With the expected release of Viagara in mid 98 we could see an initial reduced demand for muse.
Until the final scenario plays out we will be flying on one engine..
Did I just hear it sputter?

RT
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