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Biotech / Medical : VVUS: VIVUS INC. (NASDAQ)
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To: Fiddler who wrote (10086)6/25/1998 5:06:00 PM
From: Diamondcutter  Read Replies (1) of 23519
 
Lower margins doesn't necessarily mean negative margins. Lower profit margins are likely relative to the variable cost to produce a unit, leaving the fixed costs of the new facility to be covered by gross profits on x number of units shipped. With the higher margined US production limited until the FDA approval, the international sales are not enough to cover the overhead. This should (or put differently, had better) change once domestic shipments of size begin again and (hopefully) scripts pick up again. Viagra scripts for the last few weeks were encouraging.

Diamondcutter
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