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VIVUS Announces $110 Million Synthetic Capped Royalty Financing



VIVUS Announces $110 Million Synthetic Capped Royalty Financing

MOUNTAIN VIEW, Calif., March 26, 2013 (GLOBE NEWSWIRE) -- VIVUS, Inc.
(Nasdaq:VVUS) today announced that it has entered into a $110 million
non-equity financing with an investment fund managed by Pharmakon Advisors.
Under the terms of this financing, VIVUS will make an initial draw of $50
million and will have the option, at its discretion, to draw an additional $60
million at any time prior to December 31, 2013.

"This royalty financing provides VIVUS with non-dilutive capital for continued
commercialization of Qsymia and other corporate activities," stated Timothy E.
Morris, senior vice president and chief financial officer, VIVUS, Inc. "The
innovative financing arrangement has no equity component and is structured to
allow maximum flexibility for VIVUS."

"We are pleased to be partnering with VIVUS for this transaction," said Pedro
Gonzalez de Cosio, Managing Member of Pharmakon Advisors. "Based on our
extensive confidential due diligence, we are impressed with the VIVUS team and
have confidence in the commercial opportunities represented by Qsymia as an
important therapy for chronic weight management."

Under the terms of the financing, VIVUS will make no payments for the first
year. Repayments will begin in the second quarter of 2014 and end in the
second quarter of 2018 and will be based on scheduled quarterly amounts. These
payments may be lower than the scheduled amounts as they are subject to a
capped percentage of future net sales of Qsymia^® (phentermine and topiramate
extended-release) capsules CIV.

About Qsymia

Qsymia is approved in the U.S. and is indicated as an adjunct to a
reduced-calorie diet and increased physical activity for chronic weight
management in adults with an initial body mass index (BMI) of 30 kg/m^2 or
greater (obese) or 27 kg/m^2 or greater (overweight) in the presence of at
least one weight-related medical condition such as high blood pressure, type 2
diabetes, or high cholesterol.

The effect of Qsymia on cardiovascular morbidity and mortality has not been
established. The safety and effectiveness of Qsymia in combination with other
products intended for weight loss, including prescription and over-the-counter
drugs, and herbal preparations, have not been established.

Important Safety Information

Qsymia (phentermine and topiramate extended-release) capsules CIV is
contraindicated in pregnancy; in patients with glaucoma; in hyperthyroidism;
in patients receiving treatment or within 14 days following treatment with
monoamine oxidase inhibitors (MAOIs); or in patients with hypersensitivity to
sympathomimetic amines, topiramate, or any of the inactive ingredients in
Qsymia.

Qsymia can cause fetal harm. Females of reproductive potential should have a
negative pregnancy test before treatment and monthly thereafter and use
effective contraception consistently during Qsymia therapy. If a patient
becomes pregnant while taking Qsymia, treatment should be discontinued
immediately, and the patient should be informed of the potential hazard to the
fetus.

The most commonly observed side effects in controlled clinical studies, 5% or
greater and at least 1.5 times placebo, include paraesthesia, dizziness,
dysgeusia, insomnia, constipation, and dry mouth.

About Pharmakon Advisors

Investment funds managed by Pharmakon Advisors have raised approximately $1
billion to invest in debt securities and capped royalties secured by revenues
from life sciences products. Pharmakon Advisors' management team has a long
and successful track record of structuring securitized financings and making
direct investments in royalty interests on life sciences products. Pharmakon
Advisors has structured investments secured by sales or royalty payments from
sixteen different pharma, biotech and medical device products.

About VIVUS

VIVUS is a biopharmaceutical company commercializing and developing
innovative, next-generation therapies to address unmet needs in obesity, sleep
apnea, diabetes and sexual health for U.S., Europe and other world markets.
Qsymia is also in phase 2 clinical development for the treatment of type 2
diabetes and obstructive sleep apnea. For more information about the company,
please visit www.vivus.com.

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," "estimate," "expect," "intend," "likely,"
"may," "plan," "potential," "predict," "opportunity" and "should," among
others. 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, our limited commercial experience
with Qsymia in the U.S.; the timing of initiation and completion of the
clinical studies required as part of the approval of Qsymia by the United
States Food and Drug Administration, or FDA; the response from the FDA to the
data that VIVUS will submit relating to post-approval clinical studies; the
impact of the indicated uses and contraindications contained in the Qsymia
label and the Risk Evaluation and Mitigation Strategy, or REMS, requirements;
the impact of distribution of Qsymia through a certified home delivery
pharmacy network; whether or not the FDA approves our amendment to the REMS
for Qsymia, which, if approved, would allow dispensing through certified
retail pharmacies to increase access while meeting all requirements of the
REMS; that we may be required to provide further analysis of previously
submitted clinical trial data; the negative opinion of the European Medicines
Agency's, or EMA, Committee for Medicinal Products for Human Use, or CHMP, for
the Marketing Authorization Application, or MAA, for Qsymia; our ability to
successfully commercialize or establish a marketing partnership for avanafil,
which will be marketed in the U.S. under the name STENDRA™; the ability of our
partners to obtain and maintain regulatory approvals to manufacture and
adequately supply our products to meet demand; our history of losses and
variable quarterly results; substantial competition; risks related to the
failure to protect our intellectual property and litigation in which we may
become involved; uncertainties of government or third party payer
reimbursement; our reliance on sole source suppliers; our limited sales and
marketing and manufacturing experience; our reliance on third parties and our
collaborative partners; our failure to continue to develop innovative
investigational drug candidates and drugs; risks related to the failure to
obtain FDA or foreign authority clearances or approvals and noncompliance with
FDA or foreign authority regulations; our ability to demonstrate through
clinical testing the safety and effectiveness of our investigational drug
candidates; the timing of initiation and completion of clinical trials and
submissions to foreign authorities; the results of post-marketing studies are
not favorable; compliance with post-marketing regulatory standards is not
maintained; the volatility and liquidity of the financial markets; our
liquidity and capital resources; and our expected future revenues, operations
and expenditures. As with any pharmaceutical in development, there are
significant risks in the development, the regulatory approval, and the
commercialization of new products. There are no guarantees that the product
will receive regulatory approval outside the United States for any indication
or prove to be commercially successful. VIVUS does not undertake an obligation
to update or revise any forward-looking statements. Investors should read the
risk factors set forth in VIVUS's Form 10-K for the year ending December 31,
2012, and periodic reports filed with the Securities and Exchange Commission.

CONTACT: VIVUS, Inc.
         Timothy E. Morris
         Chief Financial Officer
         morris@vivus.com
        
         Financial Media Relations:
         Joele Frank, Wilkinson Brimmer Katcher
         Jennifer Beugelmans
         jbeugelmans@joelefrank.com
         (212) 895-8692
        
         Investor Relations:
         The Trout Group
         Brian Korb
         bkorb@troutgroup.com
         (646) 378-2923
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