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

To: alan laValley who wrote (13541)	8/17/1998 11:42:00 PM
From: VLAD	Read Replies (1) \| Respond to of 23519

al, They simply got too cocky and over confident after going from years of losing money to suddenly netting over $30 million on a product whose demand was higher than their capacity to produce it. This very scenario gave vivus management the mentality that they could rely on a massive cash flow from MUSE sales (thus the adverstising/rental sales force/stock buy back wastes) and only needed to increase their capacity to produce MUSE to be successful. They made the crucial error of assuming that Viagra initially would decrease sales in Q2 and Q3 but would eventually help sales via awareness. We now all know that they totally misjudged just how much Viagra would effect MUSE sales in Q2 and Q3. Fact of the matter is that they indeed did need to expand their capacity to produce MUSE but they ignored the Viagra cloud and instead of conserving cash for the rainy Viagra launch day, they blew almost the entire wad on things that were better never spent on. And we can't just blame the management because it was the board of directors that approved the stock buy back. There was nothing wrong with approving the buy back but spending all the money in 2 quarters was foolish instead of conserving the cash for times like now. Anyway the damage is done and over now. There still is an opportunity for Vivus to gain the Viagra failures. There is but one way this can be done. Domestic Partner! ASAP!