ARNA's LoVE Affair with Wall Street & the fatman (Big-P) continues as the competition stages a buyout. Its like an ugly girl acting like the queen of the ball.....live it up. The real story of a buyout is soon to come.
It is not unusual for VVUS whose officers are and have been lawyers. No scientists or researchers. Only 30 lawyers and 1 secretary. If indeed they were bought by yet another lawyer, they clearly would be comfortable with that.
VVUS has never been about innovation and research. Only a vehicle by which a bunch of lawyers enriched themselves by selling all their shares at $31.
j_butler1959... you are 100% correct, I figured that out too long time ago (5 years to be exact) when VVUS was acquired by Slick Willie, he too was only a businessman, not a scientist, he was a #$%$, and he or they conspired to ride the coat-tail of Arena's -Lorcasrin/Belviq discovery early on, it was all a strategy planned out several years ago. All those businessmen and lawyers involved in the shame made a bunch of money on VVUS and Q, it's a darn shame too...
read carefully - they haven't invested much at all - just call option contracts and forward contracts that are pretty much the same as more options. They have invested a pittance - highly leveraged. They are either playing an induced run-up (pump and dump) or will need to borrow nearly 100% of the money. Who in the world would lend money to Aspen so they can buy VVUS in a highly leveraged way, knowing they can only produce negative cash flow in the foreseeable future? Since they are not even a real pharma, there is no pipe, only a shaky IP play. Would you lend a lawyer $640M to buy that???? Makes no sense - absolutely no sense. If this runs up anywhere near 6, it will be a great shorting opportunity (I will be buying some puts).