VIVUS, Inc.

(NASDAQ: VVUS)
November 22, 2012

Analyst Consensus Rating1

About VIVUS, Inc.

VIVUS, Inc. is a biopharmaceutical company. The Company is engaged in the development and commercialization of therapeutic drugs for underserved markets, including obesity and related morbidities, such as sleep apnea and diabetes, and men's sexual health. As of the year ended December 31, 2011, it had one investigational drug candidate, QNEXA, which has been submitted for approval as a treatment for weight loss in the United States and the European Union. The Companys investigational drug pipeline includes two late-stage clinical investigational drug candidates. One of these investigational drug candidates, QNEXA, has completed Phase III clinical trials for obesity and Phase II clinical trials for diabetes and obstructive sleep apnea. In addition to Qnexa, it has an investigational drug candidate, avanafil, to treat erectile dysfunction (ED). The Company has completed the Phase III clinical studies for avanafil, and filed an NDA with the FDA in June 2011.

Overview
Sector Industry Employees IPO Year Healthcare Biotechnology 38 N/A

Key Data
Last Trade Price Range (52 week) Avg Volume (13 Week) Shares Outstanding Mkt Cap Enterprise Value Book Value per Share Dividend Yield $11.73 8.6 - 31.21 3,700,000 101,000,000 $1,180,000,000 $766,610,000 $2.72 --

Contents
1. 2. 3. 4. 5.6. 7. 8. Overview Technical Data Key Ratios Earnings & Analyst Financial Statements Company Insiders Disclaimer

Highlights & Recent Developments

Shares of the anti-obesity drug maker surged 13 percent on large volume after the third-largest health insurer, Aetna, stated it would provide coverage for Vivus and Arenas diet drugs.

For the third quarter, the company recognized net product revenues of $41,000 from prescriptions shipped from certified pharmacies to patients. Given the lack of history in selling Qsymia, VIVUS will recognize revenue on the sell-through method, that is, revenue is recognized as prescriptions are shipped to patients.

On October 17, 2012, the company submitted an amendment to the Risk Evaluation and Mitigation Strategy, or REMS, for Qsymia proposing a REMS modification that would allow us to dispense Qsymia through select retail pharmacies to increase access while meeting all requirements of the REMS.

Analyst Consensus Rating based on publicly reported third party data. See disclaimer.

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2011 Paragon Financial Limited. All rights reserved.

VIVUS, Inc. (NASDAQ: VVUS)

November 22, 2012

Technical Data
Price Information
52 Week Low 52 Week High 50 Day Moving Average 200 Day Moving Average Average Daily Volume (13Wk) $8.60 $31.21 $18.00 $21.34 3,700,000

Support / Resistance
Type
---------------

Value
---------------

Confluence
---------------

Technical Signals Composite Indicator

Indicator
Trend Spotter 7 Day Average Directional Indicator 10 - 8 Day Moving Average Hilo Channel

Signal
Sell Buy Buy Sell Sell Hold Hold Sell Sell Buy Sell Sell Sell

Strength
Average Minimum Minimum Minimum Maximum

Direction
Weakest Strongest Strongest Weakest Strongest Bullish Bullish

Short-Term Indicators

20 Day Moving Average vs Price 20 - 50 Day MACD Oscillator 20 Day Bollinger Bands 40 Day Commodity Channel Index 50 Day Moving Average vs Price 20 - 100 Day MACD Oscillator 50 Day Parabolic Time/Price 60 Day Commodity Channel Index

Medium-Term Indicators

Strong Maximum Minimum Minimum Strong Maximum

Weakest Strongest Strongest Weakest Weakest Strongest

Long-Term Indicators

100 Day Moving Average vs Price 50 - 100 Day MACD Oscillator

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2011 Paragon Financial Limited. All rights reserved.

VIVUS, Inc. (NASDAQ: VVUS)

November 22, 2012

Key Statistics & Ratios

Valuation Ratios
Company
P/E Ratio (TTM) P/E High - Last 5 Yrs. P/E Low - Last 5 Yrs. Beta Price to Sales (TTM) Price to Book (MRQ) Price to Tangible Book (MRQ) Price to Cash Flow (TTM) Price to Free Cash Flow (TTM) % Owned Institutions 0.00 0.00 0.00 1.20 25392.43 3.80 3.80 0.00 0.00 0.0%

Industry
22.88 66.95 12.37 0.62 4.68 3.01 4.36 15.76 6.15 0.0%

Sector
23.40 64.35 13.23 0.64 4.77 3.00 5.39 15.03 6.90 0.0%

Growth Rates
Company
Sales (MRQ) vs Qtr. 1 Yr. Ago Sales (TTM) vs TTM 1 Yr. Ago Sales - 5 Yr. Growth Rate EPS (MRQ) vs Qtr. 1 Yr. Ago EPS (TTM) vs TTM 1 Yr. Ago EPS - 5 Yr. Growth Rate Capital Spending - 5 Yr. Growth Rate 0.0% 0.0% 0.0% -287.9% -49.5% 0.0% -16.7%

Industry
15.7% 16.4% 10.9% 121.4% 0.0% 4.7% 10.0%

Sector
15.8% 16.1% 12.5% 110.3% 0.0% 5.1% 10.0%

Financial Strength
Company
Quick Ratio (MRQ) Current Ratio (MRQ) LT Debt to Equity (MRQ) Total Debt to Equity (MRQ) Interest Coverage (TTM) 8.48 8.90 0.00 0.00 -8.34

Management Effectiveness
Industry
2.13 2.75 17.28 24.97 58.55

Sector
2.08 2.69 33.39 45.07 40.78

Company
Return On Assets (TTM) Return On Assets - 5 Yr. Avg. Return On Investment (TTM) Return On Investment - 5 Yr Avg Return On Equity (TTM) Return On Equity - 5 Yr. Avg. -40.8% -20.9% -45.0% -27.3% -45.0% -30.9%

Industry
7.8% 9.9% 10.1% 12.6% 12.8% 15.1%

Sector
7.1% 9.2% 9.5% 11.5% 11.9% 13.9%

Profitability
Company
Gross Margin (TTM) Gross Margin - 5 Yr. Avg. EBITD Margin (TTM) EBITD - 5 Yr. Avg. Operating Margin (TTM) Operating Margin - 5 Yr. Avg. Pre-Tax Margin (TTM) Pre-Tax Margin - 5 Yr. Avg. Net Profit Margin (TTM) Net Profit Margin - 5 Yr. Avg. Effective Tax Rate (TTM) Effective Tax Rate - 5 Yr. Avg. -110.3% 0.0% -108.6% -110.2% -109.3% 0.0% 0.0%

Industry
61.2% 58.8% 0.0% 24.7% 6.4% 19.1% 5.9% 19.5% 1.3% 14.8% 30.0%

Sector
58.5% 56.8% 0.0% 0.0% 4.4% 16.8% 3.9% 17.0% -0.4% 12.5% 31.2%

Efficiency
Company
Revenue/Employee (TTM) Net Income/Employee (TTM) Receivable Turnover (TTM) Inventory Turnover (TTM) Asset Turnover (TTM) 1,079 -2,514,395 0.04 0.00 0.00

Industry
21,239,599 1,825,810 3.94 1.73 0.59

Sector
21,344,492 1,628,897 4.16 3.54 0.61

Dividends
Company
Dividend Yield Dividend Yield - 5 Year Avg. Dividend 5 Year Growth Rate Payout Ratio (TTM) 0.0% 0.0% 0.0% 0.0%

Industry
2.1% 1.9% 12.5% 38.7%

Sector
2.0% 1.7% 11.8% 37.1%

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2011 Paragon Financial Limited. All rights reserved.

VIVUS, Inc. (NASDAQ: VVUS)

November 22, 2012

Earnings & Analyst Data

EPS Estimates
# of Ests.
Quarter Ending Dec-12 Quarter Ending Mar-13 Year Ending Dec-12 Year Ending Dec-13 11 3 12 12

Dividend Payments
Mean Est.
-$0.35 -$0.19 -$1.20 -$0.78

High Est.
$0.35 $0.32 -$0.49 $1.59

Low Est.
-$0.55 -$0.56 -$1.41 -$1.79

Dividend Amount
0.23 0.046 0.2 0.04 0.2

Ex-dividend Date Payable Date

13-Nov-12 13-Nov-12 14-Aug-12 14-Aug-12 15-May-12 15-May-12 14-Feb-12 14-Feb-12 15-Nov-11 15-Nov-11 16-Aug-11 17-May-11 17-May-11 15-Feb-11 15-Feb-11 16-Nov-10 16-Nov-10 17-Aug-10 17-Aug-10 17-Aug-10 17-Aug-10 17-Aug-10 17-Aug-10 13-Dec-12 13-Dec-12 13-Sep-12 13-Sep-12 14-Jun-12 14-Jun-12 8-Mar-12 8-Mar-12 8-Dec-11 8-Dec-11 8-Sep-11 9-Jun-11 9-Jun-11 10-Mar-11 10-Mar-11 9-Dec-10 9-Dec-10 9-Sep-10 9-Sep-10 9-Sep-10 9-Sep-10 9-Sep-10 9-Sep-10

EPS Historical Surprises

Estimates Actual Difference Surprise %

0.04 0.2 0.04 0.2 0.04 0.032 0.16 0.032 0.16

Analyst Recommendation Summary

CURRENT
Strong Buy (1.0) Moderate Buy (2.0) Hold (3.0) Moderate Sell (4.0) Strong Sell (5.0) Mean Recommendation Current Consensus 5 1 4 1 0 2.1 Hold

1 MONTH AGO
5 1 4 1 0 2.1

2 MONTHS AGO
5 1 4 1 0 2.1

3 MONTHS AGO
5 1 4 1 0 2.1

0.032 0.16 0.032 0.13 0.13 0.13 0.13 0.13 0.026

Analyst Upgrades & Downgrades

Date
17-Jul-12 22-Feb-12 22-Feb-12 2-Aug-10 15-Jul-10 15-Jul-10 8-Jul-10

Mean Target:
Action
Downgrade Upgrade Upgrade Downgrade Downgrade Downgrade Downgrade

Research Firm
Brean Murray Brean Murray Rodman & Renshaw Brean Murray Jefferies Brean Murray Rodman & Renshaw

From
Buy Sell Mkt Perform Hold Hold Buy Mkt Outperform

To
Hold Hold Mkt Outperform Sell Underperform Hold Mkt Perform

High Target: Low Target: No. of Brokers:

$40.00 $6.00 $9.00

Page 4 of 8

2011 Paragon Financial Limited. All rights reserved.

VIVUS, Inc. (NASDAQ: VVUS)

November 22, 2012

Financial Statements
Balance Sheet
Period Ending
Assets Cash And Cash Equivalents Short Term Investments Net Receivables Inventory Other Current Assets Total Current Assets Long Term Investments Property Plant and Equipment Goodwill Intangible Assets Accumulated Amortization Other Assets Deferred Long Term Asset Charges Total Assets Liabilities Accounts Payable Short/Current Long Term Debt Other Current Liabilities Total Current Liabilities Long Term Debt Other Liabilities Deferred Long Term Liability Charges Total Liabilities

Figures in Millions of US Dollars (exept per share values)

Annual
30-Dec-11
40 107 -3 2 152 -0 -----152

Quarterly
30-Dec-10
37 102 -3 2 144 -0 -----144

30-Dec-09
41 166 --17 223 -0 ---6 -230

29-Sep-12
62 212 1 15 17 307 -1 -----309

29-Jun-12
81 229 -3 8 322 -0 -----322

30-Mar-12
201 133 -3 2 338 -0 -----339

30-Dec-11
40 107 -3 2 152 -0 -----152

9 -2 11 ---11

9 -4 12 ---12

15 -8 23 15 6 -43

34 -1 34 ---34

14 -1 15 ---15

12 -1 13 ---13

9 -2 11 ---11

Stockholders Equity Misc Stocks Options Warrants Redeemable Preferred Stock Preferred Stock Common Stock Retained Earnings Treasury Stock Capital Surplus Other Stockholder Equity Total Stockholder Equity Net Tangible Assets (Book Value) ---0 (346) -487 0 141 141 ---0 (300) -432 0 132 132 ---0 (234) -421 (0) 187 187 ---0 (429) -703 0 274 274 ---0 (389) -696 (0) 307 307 ---0 (365) -691 (0) 326 326 ---0 (346) -487 0 141 141

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2011 Paragon Financial Limited. All rights reserved.

VIVUS, Inc. (NASDAQ: VVUS)

November 22, 2012 Income Statement
Period Ending
Total Revenue Cost of Revenue Gross Income Research and Development Selling General and Administrative Non Recurring Others Total Operating Expenses Operating Income or Loss Total Other Income(Expenses) Net Earnings Before Interest And Taxes Interest Expense Income Tax Expense Net Income From Continuing Ops Other Items not from Continuing Operations Net Income attributable to the Company Preferred Stock And Other Adjustments Net Income Applicable To Common Shares

Annual
31-Dec-11
---25 22 --47 (47) 0 (47) 0 0 (47) 1 (46) -(46)

Quarterly
31-Dec-10
---40 26 --66 (66) (5) (71) 4 0 (75) 9 (66) -(66)

31-Dec-09
31 -31 71 14 --85 (53) 1 (52) 4 (2) (53) (1) (54) -(54)

30-Sep-12
0 0 0 9 31 --41 (41) 0 (40) (0) 0 (40) 0 (40) -(40)

30-Jun-12
---9 15 --24 (24) 0 (24) 0 0 (24) 0 (24) -(24)

31-Mar-12
---6 13 --19 (19) 0 (19) 0 0 (19) (0) (19) -(19)

31-Dec-11
---5 7 --12 (12) 0 (12) 0 0 (12) 1 (11) -(11)

Cash Flow Statement

Period Ending
Net Income Operating Activities Depreciation Adjustments To Net Income Changes In Accounts Receivables Changes In Liabilities Changes In Inventories Changes In Other Operating Activities Total Cash Flow From Operating Activities Investing Activities Capital Expenditures Investments Other Cash flows from Investing Activities Total Cash Flows From Investing Activities Financing Activities Dividends Paid Sale Purchase of Stock Net Borrowings Other Cash Flows from Financing Activities Total Cash Flows From Financing Activities Effect Of Exchange Rate Changes Other Liabilities

Annual
30-Dec-11
(46) 0 7 -1 0 (0) (40)

Quarterly
30-Dec-10
(66) 0 12 -(4) (3) 3 (66)

30-Dec-09
(54) 0 3 -(41) -(3) (96)

29-Sep-12
(40) 1 5 (0) 9 (3) (8) (36)

29-Jun-12
(24) 2 4 -2 (1) (6) (23)

30-Mar-12
(19) 0 3 -2 0 (0) (14)

30-Dec-11
(11) (2) 2 -2 -(1) (11)

(0) (5) -(5)

(0) 64 22 86

(0) (43) (0) (43)

(1) 16 -15

(0) (99) -(99)

-(25) -(25)

(0) (21) -(21)

-48 --48 ---

-4 (23) (5) (24) ---

-105 9 (0) 114 -6

-2 --2 ---

-2 --2 ---

-201 --201 ---

-1 --1 ---

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2011 Paragon Financial Limited. All rights reserved.

VIVUS, Inc. (NASDAQ: VVUS)

November 22, 2012

Company Insiders
Company Officers
Name
Mark Logan Peter Tam Leland Wilson Timothy Morris Michael Miller Guy Marsh Lee Perry Wesley Day John Slebir Charles Casamento Ernest Mario Linda Shortliffe Brian Korb

Age Since
73 48 68 50 55 57 60 49 46 66 74 63 2007 2009 2009 2012 2010 2000 2007 2005 2011 2008 2012 1999

Current Position
Independent Chairman of the Board President, Director Chief Executive Officer, Director Chief Financial Officer, Senior Vice President - Finance and Global Corporate Development, Secretary Senior Vice President, Chief Commercial Officer Vice President - U.S. Operations, General Manager Vice President, Chief Accounting Officer Vice President - Clinical Development Vice President - Business Development, General Counsel Independent Director Independent Director Independent Director IR Contact Officer

Basic Compensation
-$1,326,790 $2,353,660 $1,042,930 $803,595 $929,807 -$771,203 $1,439,620 -------

Options
-323,750 1,500,313 230,608 -499,255 -23,442 --------

Options Value
-$31,594 $888,972 $237,126 -$800,521 -$154,969 --------

Insider Transactions
Trading Date
19 Aug 2012 19 Aug 2012 19 Aug 2012 13 Aug 2012 13 Aug 2012 13 Aug 2012 13 Aug 2012 13 Aug 2012 13 Aug 2012 13 Aug 2012 13 Aug 2012 13 Aug 2012 13 Aug 2012 13 Aug 2012 12 Aug 2012 12 Aug 2012 12 Aug 2012 12 Aug 2012 9 Aug 2012 9 Aug 2012

Name
CASAMENTO CHARLES J CASAMENTO CHARLES J MARIO ERNEST LOGAN MARK B LOGAN MARK B DAIRIKI SHORTLIFFE LINDA M DAIRIKI SHORTLIFFE LINDA M DAIRIKI SHORTLIFFE LINDA M LOGAN MARK B LOGAN MARK B LOGAN MARK B LOGAN MARK B LOGAN MARK B LOGAN MARK B DAIRIKI SHORTLIFFE LINDA M DAIRIKI SHORTLIFFE LINDA M LOGAN MARK B LOGAN MARK B MARIO ERNEST DAIRIKI SHORTLIFFE LINDA M

Title
Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director Director

Type
Buy Sell Buy Sell Buy Sell Sell Buy Sell Sell Buy Buy Sell Buy Sell Buy Buy Sell Buy Buy

Shares Traded
8000 8000 5000 11816 8000 8000 10000 10000 8000 8000 22000 8000 22000 11816 20000 20000 18184 18184 5000 25000

Price
$5.69 $20.63 $20.75 $23.13 $5.04 $23.00 $22.50 $4.25 $23.13 $23.13 $6.05 $7.15 $23.13 $4.25 $22.00 $4.25 $4.25 $21.81 $21.50 $4.23

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2011 Paragon Financial Limited. All rights reserved.

VIVUS, Inc. (NASDAQ: VVUS)

November 22, 2012

Disclaimer
This report is provided for general information purposes only. The information contained in this report is not to be construed as advice and should not be confused as any sort of advice. Information has been obtained from sources considered to be reliable, but we do not guarantee the information is accurate, correct, complete, or timely or make any warranties regarding results from its usage. Past performance is not a guarantee of future results. Please consult a broker before purchasing or selling any securities viewed on or mentioned herein. Redistribution or reproduction is prohibited without written permission. The Bedford Report (hereafter Bedford) is owned and operated by Paragon Financial Limited (hereafter PFL). Bedford/ PFL is an online financial newsletter focused on coverage of small-cap and large-cap public companies. Bedford/PFL is not a registered broker dealer or a registered investment advisor. No information accessed through the Bedford/PFL Web site or this report constitutes a recommendation or solicitation to buy, sell or hold any security in any jurisdiction. All bullish, bearish, neutral or other analyst ratings are based on publically available third party analyst ratings. Specifically, both the Analyst Consensus Rating and Current Analyst Consensus Data are directly based on information published by money.msn.com. Bedford/PFL receives compensation from third party organizations for advertising services provided in the form of email newsletters. Bedford/PFL and its affiliates, officers, directors and agents have been compensated for featured company coverage and therefore information should not be construed as unbiased. Bedford/PFL and its outside sources use certain data derived from the U.S. Securities and Exchange Commission (SEC) filings, public information and data compiled by other vendors. The reader should verify all claims and do his/her own research and due diligence before investing in any securities mentioned. Guests of PFLs website, www.bedfordreport.com, readers of Bedford/PFLs distributed reports/releases/advertisements, and other interested parties assume full responsibility for the accuracy of all SEC filing data, compiled data from other sources including data from the issuing Company, and are urged to confirm that data with the specific issuing Company. Bedford/PFL will not be liable to any person or entity for the quality, accuracy, completeness, reliability or timeliness of information in this report, or for any direct, indirect, consequential, incidental, special or punitive damages that may arise out of the use of information, products or services from any person or entity including but not limited to lost profits, loss of opportunities, trading losses, and damages that may result from any incompleteness or inaccuracy in the profiled company information Bedford/PFL and its data vendors do not assume any responsibility or liability for any investor decision made as a result of accessing fundamental and/or financial data on any profiled company as a consequence of viewing our materials. Bedford/PFL encourages its readers and visitors to its website to invest carefully and read the investor information available on the web sites of the Securities and Exchange Commission (SEC) at www.sec.gov and/or the National Association of Securities Dealers (NASD) at www.nasd.com. Investors interested in purchasing securities are advised to read the Prospectus, 10K, 10Q, other relevant public documents in full, request Company financial information and to conduct their own research and due diligence. Statements made in this release may include projections, made in reliance on the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Bedford/PFL has made every reasonable effort to ensure that the information and assumptions on which these statements and projections are based are current, reasonable, and complete. However, a variety of factors could cause actual results to differ materially from the projections, anticipated results or other expectations expressed in this release. Bedford/PFL makes these statements and projections in good faith, neither Bedford/PFL nor its management can guarantee that the transactions will be consummated or that anticipated future results will be achieved.

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