Vivus Forecasts Weak 4th-Quarter Profit

Vivus Inc. said its fourth-quarter profit will fall short of estimates as production delays cut sales of its impotence drug. A delay in opening a second factory and lower production at the existing one could cut sales of the drug by 25% in the fourth quarter from the third quarter. The delays will also cut shipments to the U.S. and Europe in the first two quarters of 1998, the company said. The delays come as other drug makers are preparing to start sales next year of a new generation of impotence drugs, taken orally. Vivus’ drug, Muse, is administered through an applicator inserted into the urethra. Shares of Menlo Park-based Vivus fell $6.31 to close at $13.81 on Nasdaq. Last month, Schering-Plough Corp. agreed to pay Zonagen Inc. as much as $57.5 million, excluding royalties, in a marketing agreement for Zonagen’s impotence drug, which is taken orally. Vivus’ delays in producing Muse will result in loss of market share as competition increases for impotence drugs, analysts said.