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

To: John M. Gelnieau who wrote (17018)	12/17/1998 9:35:00 AM
From: VLAD	Read Replies (4) \| Respond to of 23519

John, As I see it there will be no milestones this quarter. I was told a while ago that Vivus doesn't get any milestones from Astra until ALL 4 of those European countries grant approval. Someone can call Astra or Vivus to verify this. On another note, we know that Vivus will have a total of $10M in milestones in 1999 including the $2M for China. The milestones alone will generate .31/share in earnings for Vivus. I see no reason why along with the restructuring and an expanding international market and an improved domestic market Vivus can't make at least another .40 in net income from product sales. This would total .71 for 1999. If Vivus did make .71 in 1999 it would mean that we are now looking at a forward 1999 PE of 3.9. The average forward PE on biotech is about 40. If we assign Vivus but 1/2 of the average biotech PE of 20 then it would give us a share price of $14.50. If this isn't value, I don't know what is.