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

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To: AlienTech who wrote (11000)7/9/1998 6:11:00 PM
From: Mark A. Stang  Read Replies (1) of 23519
 
Buy-out: Some thoughts

Big Pharma, including Pfizer, would buy out VVUS tomorrow, if the price is right for them. But what is that price?

VVUS will probably gap down tomorrow into the 6's. I remember when it gapped down about six points last October after beating earnings. Will Big Pharma respond to Leland's "for sale" sign?

Hard to say. I played Syquest in 1996 and 1997. Always made money (but way less than I could have, especially the May 1996 runup.) There was always speculation that Iomega would buy out Syquest, but it never happened, not even as the stock approached $1 (when, concededly there had been massive dilution). The upside of VVUS is not so great that the Big Pharma boys might not be content to wait and see if they can get the MUSE patent at a fire sale.

The script #'s have to reverse and show steady growth before VVUS can attract a suitor at prices longs can be comfortable with.
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