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

To: VLAD who wrote (18405)	1/30/1999 1:27:00 PM
From: VLAD	Respond to of 23519

So what is Vivus worth to Astra/Zeneca if they simply merged Vivus' measley 31.8M shares by converting them into additional A/Z shares? Here is some math based on earnings potential of MUSE if it is placed in A/Z's hands (ie no Vivus middle man and A/Z keeps all profit beyond production costs). I believe that the earnings power per share for A/Z on the original Vivus shares can easily exceed $1.00 once A/Z launches MUSE in the US and throughout Europe. Based on current valuations on Astra and Zeneca shares as it pertains to future 1999 earnings estimates, combined they have an average forward PE of 24. In fact this is a very conservative forward PE for the third largest pharma in the world as it compares to the other large pharmas. The current average is above 30. So if Vivus shares can earn $1.00 in the hands of A/Z in 1999 and we use a forward 1999 PE of 24 we get a share price of $24.00/share which is 925% above the current close. Comments?