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

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To: ChinuSFO who wrote (4604)	1/15/1998 5:26:00 PM
From: Richard Singer	Read Replies (1) of 23519

<<<HOW WILL THAT REDUCE GROSS MARGINS? SOMEBODY PLEASE EDUCATE ME . . . . . . (COULD THEY BE SING INTERNATIONAL SALES AS AN EXCUSE?)>>> Product shipped to Astra is billed by prior agreement at lower margins than that which is shipped domestically. If less product is available for domestic shipment, margins must fall. During last quarters conference there was mention of stockpiling of product coming off the test line of the new facility. With approval from the Europeans, I believe this product can be shipped to the UK and relieve the pressure on margins, but I'm not too clear on this point. Can anyone clarify this? Richard

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