PRESS RELEASE: VIVUS Receives $140,000,000 Milestone Payment

VIVUS Receives $140,000,000 Milestone Payment
MOUNTAIN VIEW, Calif. -- Aug 9, 2007 - VIVUS today announced that it has received a $140 million milestone payment from KV Pharmaceutical ("KV") pursuant to the previously announced transfer of exclusive rights and assets related to Evamist. Under the terms of the transfer, VIVUS received an upfront payment of $10 million upon the May 15, 2007 closing. VIVUS became eligible for an additional payment following the approval by the United States Food and Drug Administration on July 27, 2007.
VIVUS is eligible to receive two additional one-time milestone payments based on sales milestones for Evamist through the term of the agreement with KV. The first, a $10 million payment will be due to VIVUS when Evamist achieves $100 million in net annual sales and the second a $20 million payment will be due to VIVUS when Evamist achieves $200 million in net annual sales.
On June 30, 2007, VIVUS had cash, cash equivalents and available-for-sale securities of $53.2 million. On a proforma basis, including the receipt of the $140 million, the cash, cash equivalents and available-for-sale securities balance at June 30, 2007 would have been $193.2 million.

"With the receipt of the $140 million milestone payment from KV, I believe VIVUS is in the strongest financial position in our history. We estimate that we can fully fund the phase 3 trials of Qnexa for obesity and maintain a strong cash position at the end of those phase 3 trials," stated Leland Wilson, president and chief executive officer of VIVUS. "In addition, with our current financial resources, we anticipate that we may be able to expand our development pipeline with minimal financing risk in the future."


VIVUS, Inc. is a pharmaceutical company dedicated to the development and commercialization of novel therapeutic products. VIVUS has three investigational products that are positioned to enter Phase 3 clinical trials. The investigational pipeline includes: Qnexa(TM), for which a Phase 2 study has been completed for the treatment of obesity; Testosterone MDTS(R), for which a Phase 2 study has been completed for the treatment of Hypoactive Sexual Desire Disorder (HSDD); and avanafil, for which a Phase 2 study has been completed for the treatment of erectile dysfunction (ED). MUSE(R) is approved and currently on the market for the treatment of ED. For more information on clinical trials and products, please visit the company's web site at

Certain statements in this press release are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words such as "anticipate," "believe," "forecast," "estimated" and "intend," among others. These forward-looking statements are based on VIVUS' current expectations and actual results could differ materially. There are a number of factors that could cause actual events to differ materially from those indicated by such forward-looking statements. These factors include, but are not limited to, the risk that sales of Evamist may never reach the stated sales milestones to trigger the payment of additional consideration; substantial competition; uncertainties of patent protection and litigation; uncertainties of government or third party payer reimbursement; reliance on sole source suppliers; limited sales and marketing efforts and dependence upon third parties; risks related to the development of innovative products; the pivotal trial design, the number of patients required and cost estimates to complete all the necessary studies of Qnexa and risks related to failure to obtain FDA clearances or approvals and noncompliance with FDA regulations. As with any pharmaceutical under development, there are significant risks in the development, regulatory approval and commercialization of new products. There are no guarantees that future clinical studies discussed in this press release will be completed or successful or that any product will receive regulatory approval for any indication or prove to be commercially successful. VIVUS does not undertake an obligation to update or revise any forward-looking statement. Investors should read the risk factors set forth in VIVUS' Form 10-K for the year ended December 31, 2006 and periodic reports filed with the Securities and Exchange Commission.