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

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To: VLAD who wrote (13533)8/17/1998 9:21:00 PM
From: alan laValley  Read Replies (1) of 23519
 
VLAD: Up until now, Vivus without debt, has keep me (and others) comfortable. Now we are talking A. using plant equipment already paid for as collateral to buy more equipment. B. using future product payments as a source to get more financing. This is all a very dangerous move. Why? With "V" getting approval in many foreign countries. it's effect on muse sales is unknown. I'm aware that international sales are backed by Astra & J&J sales force, but muse is not exactly a priority product for these company's. Expansion & "V" have placed a strain on this company's finances. Obviously the stock buy back was a major error in judgement by management that could bankrupt this company. At the risk of sounding to conservative this company should have a wait and see attitude. Lets develop the international mkt, solidify a domestic partner, get some money in the bank, then look to expand. We are in a very critical stage, moving to quickly now, could easily spell disaster. Market is aware of this, thus the lack of confidence and the inability of the stock to sustain any upward movement.
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