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

To: Mkilloran who wrote (13525)	8/17/1998 7:04:00 PM
From: DaiS	Read Replies (2) \| Respond to of 23519

Mkilloran, What does this mean about lease financing, please could you elaborate? DaiS

To: Mkilloran who wrote (13525)	8/17/1998 7:34:00 PM
From: VLAD	Read Replies (1) \| Respond to of 23519

martin, After reading the Q form, I don't really see anything in it that to me is terribly good or terribly bad. Seems like the company is trying to cover its ass by making no assurances about anything. The only part that concerns me was a few sentences relating to recent production problems in the new plant that may effect income due to higher costs and shipping delays. This is something that we investors need to find out more about. It sounds to me that part of the leasing plan conitions was met today ie the approval of Canada and subsequent 2 million milestone payment. That is the only financial milestone set for Q3. I don't know what the Q4 milestones are. Another thing I would like to find out is exactly how much more equpment expenses are needed to have the new plant fully equipted. Seems to me that the costs of the new plant have really burned a hole in Vivus's cash position. As you mentioned to me before, England is probably a good country to monitor how Viagra will effect MUSE sales. Also, I would like to find out exactly when Vivus expects to get approval from the European Union sine they will get a hefty milestone payment from Astra of $8 million (Germany, France, Italy, Spain). Looks to me as if the approval is in Q4 then Vivus will have a much better cash position to cover future expenses. I was wondering exactly how Vivus plans on going about financing the costs of the new plant in Ireland? If the plant in New Jersey has cost about $40 million with equipment I suspect that it probably will be a bit cheaper than that in Ireland. I wonder if the Irish government is planning on helping Vivus finance the construction as they sometimes do to attract foreign business. I suspect that the cost of the equipment would be greater than the cost of the building. I suppose since they do not plan on breaking ground until 1999, Q3 and Q4 result will be crucial to determine just how quickly they can actually complete the new plant. I suppose if cash is tight after 1998 then they can always do the plant in phases that would allow building costs to be alloted as each quarter's profits are realized in 1999 eg Break ground/foundation in Q1, Exterior Shell Q2, Interior Q3, equipment/lab Q4.