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

To: Musa Goksel Bulat who wrote (4247)	1/3/1998 6:32:00 PM
From: Zebra 365	Respond to of 23519

Musa, This is the press release from the VVUS web site where I got my assumption about decreased sales or "product revenues". vivus.com Vivus Announces Production Shortfall MENLO PARK, Calif.--(BUSINESS WIRE)--Dec. 10, 1997--VIVUS, Inc. (NASDAQ:VVUS) today announced that the Company will be unable to meet its production goals for the fourth quarter. This shortfall results primarily from the Company's efforts to expand its production capacity into its new 90,000 square foot plant. In an effort to complete construction and focus on international and US regulatory approvals for the new plant, VIVUS has shifted existing equipment and personnel to the new facility. In addition, because the existing manufacturing facility has run at full capacity since the product was launched, VIVUS plans to suspend production from Christmas to New Year's in order to complete needed maintenance. Because the Company continues to be capacity constrained, the impact of these factors is likely to result in approximately a 25% decrease in product revenues for the fourth quarter as compared with the third quarter. The Company anticipates that shipments from its new plant to Europe and the United States will be delayed to the first and second quarters of 1998, respectively. Such shipments will be dependent upon obtaining the required regulatory approvals. Until that time, the Company will continue to be capacity constrained. Founded in 1991, VIVUS, Inc. is a leader in the development of advanced therapeutic systems for the treatment of erectile dysfunction, commonly referred to as impotence. VIVUS has pioneered a novel therapy for erectile dysfunction known as the transurethral system for erection. This therapy consists of a proprietary, non-invasive drug delivery system that delivers pharmacologic agents via the urethra. Note to editors and investors: MUSE is a registered trademark of VIVUS Inc. Additional written materials, recent releases and Company information are available through a variety of sources, including the VIVUS home page (http://www.vivus.com) and the VIVUS Fax-On-Demand Service 888/329-5719.

To: Musa Goksel Bulat who wrote (4247)	1/3/1998 8:49:00 PM
From: blankmind	Respond to of 23519

--25% revenue decline is correct (from 3rd to 4th 1/4) -- 10-15% production decline -- These numbers seem contradictory at first, but it's really not. The margins are being squeezed due to shipments to Astra (in Europe), where prices are less. -- On the earnings front, based on my calculations, VVUS will only do $.15 to $.17 for the 4th quarter. Although the building costs of the new facility will be capitalized, the costs of running the line, to get approval, are being expensed. -- According to my sources, bad earnings due to one-time start up charges isn't going to hurt VVUS. If Vivus says they spent x-million of $$'s, but now they're ready to supply patients in all of N. America and 1/2 of Europe, then the price of the stock will soar. And that's what I predict will occur based on all the activity at the new plant. Out.