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Biotech / Medical : VVUS: VIVUS INC. (NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: Robert D who wrote (3234)	12/10/1997 2:04:00 PM
From: Steve Childs	Read Replies (3) \| Respond to of 23519

I just sent the following email to Vivus: Mr. Yntema: I trust that Vivus's management understands the urgency of needing to clarify the press release sent out today. Your investors are seriously hurting, and at this point it would be wise to limit any damage from a class action lawsuit, which seems almost certain to be filed, regardless of its merit. Specifically, Vivus needs to release a statement before the close today that addresses: 1. Demand for Muse. No one expected equipment to be shifted from the old plant to the new one. Why did this occur, and why weren't investors warned? Is this an indication of falloff in demand? 2. Why does a one week shutdown hurt revenues by 25%? It doesn't add up. Also, assuming you get manufacturing clearance early in 1998, why will it take two quarters for revenues to recover? Are there hidden problems here? The Vivus press release today only raised more serious questions about management's ability to manage growth, about long-term demand, and about the prospects for the new plant, let alone the one planned for Ireland. If the market is to believe that Vivus is still a long term buy, here is what I believe investors need to hear today for clarification: Demand for Muse. (Is it stronger than ever. Are script renewals up? etc.) Explanation of how revenues are so severely impacted by this transition. Preliminary indications for clearance on the new plant. Wasn't it recently inspected? Why will revenues be affected for two quarters? Without further clarification, you are leaving far too much information out of the equation. As a shareholder, I don't want management's time or Vivus' resources consumed by class action lawsuits. The way to avoid them is to get more out. And why not a conference call tomorrow?? Concerned, Steve Childs