Andreas: have to believe on the basis of the stock price, and lack of information from the company, that negotiations are either at a standstill, or have been terminated unsuccessfully. Very little doubt that VVUS's position becomes weaker with each passing day. Without a partner, they will need an infusion of cash. I don't know how they would get it. They will never be able to adequately fund their R&D efforts without cash. At present, product sales won't allow them to do so. The cost measures they have taken are EXCELLENT short term, but I feel they will definitely be "cutting into bone" over the long term. IMHO, I think they were much closer to having an agreement last August/September. If I were interested in the company, I would not be in any hurry. It would seem that the longer I delay, the more favorable the terms of any agreement. I don't consider VVUS an investment, it is purely a speculative play.
There are quite a few pharma's out there that never go anywhere. I owned PRX a few years back, held it for a few years, and watched it go from 3 to 1, and then to 5.00. They were bought out. It hasn't done much since. They were the ones with the nicotine patch. The product worked, but the market preferred alternative treatments. That company had excellent management. It may explain why they were effectively acquired.
The most interesting thing I find about my VVUS position is the psychology of this thread. "Damn the torpedeos, full speed ahead!" I hope this position works out for those more heavily invested than I am. Regards. |
