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

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To: John W. Andrews who wrote (11029)7/9/1998 8:08:00 PM
From: Nick Prezioso  Read Replies (5) of 23519
 
It is truly amazing that anyone can be long this stock. I can't think of ANY positives for the future of Vivus. Let's see:

- Viagra is kicking the hell out of revenues, its potential is enormous $400mil sales in one quarter alone.

- Vasomax is right around the corner.

- Harvard Scientific is close to developing a topical solution which will be non-invasive.

- Inventory levels are extremely high, with demand drying up and a limited shelf life, I expect significant write-offs to be taken next quarter.

- oh yeah, forgot to mention that their product does not work.

As for a buyout, what would Vivus have to offer a large pharma company? The return on investment would have to be high enough to have an impact on their p/e. Even if Vivus could double their current quarterly revenue it would be immaterial to a company like JNJ or Merk.

Just my thoughts.

Nick
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