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


To: VLAD who wrote (11428)7/14/1998 10:45:00 AM
From: betty moyers  Read Replies (1) | Respond to of 23519
 
Some thoughts on US Marketing Partnership

It seems to me, Vivus would want to weigh the marketing partnership agreement carefully to receive fair value for their previous sales investment. Thus some time is needed to negotiate the contract.

Let's not give away a lot of profit from the US sales efforts already made. Vivus at this date has a base market of ~0.5 MM units built up. Why should this amount suddenly go from $ 16 / unit that the company currently receives to say $ 7 MM as we believe the international is. We don't want them to dump $ 5 MM down the drain.

For all new business the MP generates, $ 7/unit would work out fine as there are no sales costs for that and production costs are dropping.

And if a deal is cut to pay higher for the established business, Vivus might want to delay signing for a couple of months to allow script numbers to rebound to a higher base number.