0000902664-13-002340.txt : 20130523 0000902664-13-002340.hdr.sgml : 20130523 20130523171151 ACCESSION NUMBER: 0000902664-13-002340 CONFORMED SUBMISSION TYPE: SC 13D/A PUBLIC DOCUMENT COUNT: 3 FILED AS OF DATE: 20130523 DATE AS OF CHANGE: 20130523 GROUP MEMBERS: DAVID NORTON GROUP MEMBERS: FIRST BIOMED MANAGEMENT ASSOCIATES, LLC GROUP MEMBERS: FIRST MANHATTAN CO. GROUP MEMBERS: HERMAN ROSENMAN GROUP MEMBERS: JON C. BIRO GROUP MEMBERS: MELVIN L. KEATING GROUP MEMBERS: ROLF BASS SUBJECT COMPANY: COMPANY DATA: COMPANY CONFORMED NAME: VIVUS INC CENTRAL INDEX KEY: 0000881524 STANDARD INDUSTRIAL CLASSIFICATION: PHARMACEUTICAL PREPARATIONS [2834] IRS NUMBER: 943136179 STATE OF INCORPORATION: CA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A SEC ACT: 1934 Act SEC FILE NUMBER: 005-48777 FILM NUMBER: 13869253 BUSINESS ADDRESS: STREET 1: 1172 CASTRO ST STREET 2: STE 200 CITY: MOUNTAIN VIEW STATE: CA ZIP: 94040 BUSINESS PHONE: 6509345265 MAIL ADDRESS: STREET 1: 1172 CASTRO STREET CITY: MOUNTAIN VIEW STATE: CA ZIP: 94040 FILED BY: COMPANY DATA: COMPANY CONFORMED NAME: FIRST MANHATTAN CO CENTRAL INDEX KEY: 0000728083 IRS NUMBER: 131957714 STATE OF INCORPORATION: NY FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: SC 13D/A BUSINESS ADDRESS: STREET 1: 437 MADISON AVE CITY: NEW YORK STATE: NY ZIP: 10022 BUSINESS PHONE: 2127563300 MAIL ADDRESS: STREET 1: 437 MADISON AVE CITY: NEW YORK STATE: NY ZIP: 10022 SC 13D/A 1 p13-1329sc13da.htm FIRST MANHATTAN CO.
SECURITIES AND EXCHANGE COMMISSION  
Washington, D.C. 20549  
   
SCHEDULE 13D/A
 
Under the Securities Exchange Act of 1934
(Amendment No. 5)*
 

VIVUS, Inc.

(Name of Issuer)
 

Common Stock, $0.001 par value

(Title of Class of Securities)
 

928551100

(CUSIP Number)
 
 

Neal K. Stearns, Esq.

First Manhattan Co.

399 Park Avenue

New York, New York 10022

(212) 756-3300

 

With a copy to:

Marc Weingarten and David Rosewater

Schulte Roth & Zabel LLP

919 Third Avenue

New York, New York 10022

(Name, Address and Telephone Number of Person
Authorized to Receive Notices and Communications)
 

May 23, 2013

(Date of Event Which Requires Filing of This Statement)
 

 

If the filing person has previously filed a statement on Schedule 13G to report the acquisition that is the subject of this Schedule 13D, and is filing this schedule because of Rule 13d-1(e), Rule 13d-1(f) or Rule 13d-1(g), check the following box. [ ]

 

(Page 1 of 18 Pages)

______________________________

* The remainder of this cover page shall be filled out for a reporting person's initial filing on this form with respect to the subject class of securities, and for any subsequent amendment containing information which would alter disclosures provided in a prior cover page.

 

The information required on the remainder of this cover page shall not be deemed to be "filed" for the purpose of Section 18 of the Securities Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of that section of the Act but shall be subject to all other provisions of the Act (however, see the Notes).

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 2 of 18 Pages

 

1

NAME OF REPORTING PERSON

First Manhattan Co.

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) x

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS

AF

5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ¨
6

CITIZENSHIP OR PLACE OF ORGANIZATION

New York

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH:
7

SOLE VOTING POWER

5,990,709 shares of Common Stock

8

SHARED VOTING POWER

3,998,895 shares of Common Stock

9

SOLE DISPOSITIVE POWER

5,990,709 shares of Common Stock

10

SHARED DISPOSITIVE POWER

3,998,895 shares of Common Stock

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

9,989,604 shares of Common Stock

12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨
13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

9.9% (see Item 5)

14

TYPE OF REPORTING PERSON

BD; IA; PN

         

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 3 of 18 Pages

 

 

1

NAME OF REPORTING PERSON

First BioMed Management Associates, LLC

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) x

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS

AF

5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ¨
6

CITIZENSHIP OR PLACE OF ORGANIZATION

New York

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH:
7

SOLE VOTING POWER

0

8

SHARED VOTING POWER

2,706,800 shares of Common Stock

9

SOLE DISPOSITIVE POWER

0

10

SHARED DISPOSITIVE POWER

2,706,800 shares of Common Stock

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

2,706,800 shares of Common Stock

12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨
13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

2.7% (see Item 5)

14

TYPE OF REPORTING PERSON

IA

         

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 4 of 18 Pages

 

 

1

NAME OF REPORTING PERSON

Herman Rosenman

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) x

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS

PF

5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ¨
6

CITIZENSHIP OR PLACE OF ORGANIZATION

United States

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH:
7

SOLE VOTING POWER

5,000 shares of Common Stock

8

SHARED VOTING POWER

0

9

SOLE DISPOSITIVE POWER

5,000 shares of Common Stock

10

SHARED DISPOSITIVE POWER

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

5,000 shares of Common Stock

12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨
13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

0.0% (see Item 5)

14

TYPE OF REPORTING PERSON

IN

         

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 5 of 18 Pages

 

 

1

NAME OF REPORTING PERSON

Jon C. Biro

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) x

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS

PF

5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ¨
6

CITIZENSHIP OR PLACE OF ORGANIZATION

United States

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH:
7

SOLE VOTING POWER

2,000 shares of Common Stock

8

SHARED VOTING POWER

0

9

SOLE DISPOSITIVE POWER

2,000 shares of Common Stock

10

SHARED DISPOSITIVE POWER

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

2,000 shares of Common Stock

12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨
13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

0.0% (see Item 5)

14

TYPE OF REPORTING PERSON

IN

         

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 6 of 18 Pages

 

 

1

NAME OF REPORTING PERSON

David York Norton

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) x

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS

PF

5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ¨
6

CITIZENSHIP OR PLACE OF ORGANIZATION

Australia

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH:
7

SOLE VOTING POWER

1,500 shares of Common Stock

8

SHARED VOTING POWER

0

9

SOLE DISPOSITIVE POWER

1,500 shares of Common Stock

10

SHARED DISPOSITIVE POWER

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

1,500 shares of Common Stock

12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨
13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

0.0% (see Item 5)

14

TYPE OF REPORTING PERSON

IN

         

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 7 of 18 Pages

 

 

1

NAME OF REPORTING PERSON

Rolf Bass

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) x

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS

PF

5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ¨
6

CITIZENSHIP OR PLACE OF ORGANIZATION

Germany

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH:
7

SOLE VOTING POWER

100 shares of Common Stock

8

SHARED VOTING POWER

0

9

SOLE DISPOSITIVE POWER

100 shares of Common Stock

10

SHARED DISPOSITIVE POWER

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

100 shares of Common Stock

12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨
13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

0.0% (see Item 5)

14

TYPE OF REPORTING PERSON

IN

         

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 8 of 18 Pages

1

NAME OF REPORTING PERSON

Melvin L. Keating

2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP

(a) x

(b) ¨

3 SEC USE ONLY
4

SOURCE OF FUNDS

PF

5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDING IS REQUIRED PURSUANT TO ITEMS 2(d) or 2(e) ¨
6

CITIZENSHIP OR PLACE OF ORGANIZATION

United States

NUMBER OF
SHARES
BENEFICIALLY
OWNED BY
EACH
REPORTING
PERSON WITH:
7

SOLE VOTING POWER

900 shares of Common Stock

8

SHARED VOTING POWER

0

9

SOLE DISPOSITIVE POWER

900 shares of Common Stock

10

SHARED DISPOSITIVE POWER

0

11

AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON

900 shares of Common Stock

12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES CERTAIN SHARES ¨
13

PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)

0.0% (see Item 5)

14

TYPE OF REPORTING PERSON

IN

       

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 9 of 18 Pages

 

 

This Amendment No. 5 ("Amendment No. 5") amends and supplements the statement on Schedule 13D filed with the Securities and Exchange Commission (the "SEC") on January 18, 2013 (the "Original Schedule 13D"), Amendment No. 1 to the Original Schedule 13D, filed with the SEC on March 8, 2013 ("Amendment No. 1"), Amendment No. 2 to the Original Schedule 13D, filed with the SEC on April 12, 2013 ("Amendment No. 2"), Amendment No. 3 to the Original Schedule 13D, filed with the SEC on April 17, 2013 ("Amendment No. 3") and Amendment No. 4 to the Original Schedule 13D, filed with the SEC on April 26, 2013 ("Amendment No. 4" and together with the Original Schedule 13D, Amendment No. 1, Amendment No. 2, Amendment No. 3 and this Amendment No. 5, the "Schedule 13D") with respect to the shares of common stock, $0.001 par value (the "Common Stock"), of VIVUS, Inc., a Delaware corporation (the "Issuer").  Capitalized terms used herein and not otherwise defined in this Amendment No. 5 have the meanings set forth in the Schedule 13D.  This Amendment No. 5 amends Items 2, 3, 4, 5, 6 and 7 as set forth below.
 
As a result of the nomination by an affiliate of the Reporting Persons of Alexander J. Denner, Ph.D. ("Dr. Denner" and together with his affiliated funds and their investment manager, the "Denner Parties"), as described in Item 4 of this Amendment No. 5, the Reporting Persons and the Denner Parties may be deemed to be a "group" pursuant to Rule 13d-5(b)(1) promulgated under the Securities Exchange Act of 1934, as amended (the "Exchange Act"). The security interests reported in this Schedule 13D do not include security interests owned by the Denner Parties. This Schedule 13D only reports information on the Reporting Persons and does not report any acquisition or disposition of Common Stock by the Denner Parties.

 

Item 2. IDENTITY AND BACKGROUND
   
Item 2 of the Schedule 13D is hereby amended and restated in its entirety as follows:
 
This statement is being filed by First Manhattan Co., a New York limited partnership (“FMC”), First BioMed Management Associates, LLC ("FBMA"), a Delaware limited liability company, Herman Rosenman, a United States citizen ("Mr. Rosenman"), Jon C. Biro, a United States citizen ("Mr. Biro"), David York Norton, an Australian citizen ("Mr. Norton"), Rolf Bass, a German citizen ("Dr. Bass") and Melvin L. Keating, a United States citizen ("Mr. Keating" and together with FMC, FBMA, Mr. Rosenman, Mr. Biro, Mr. Norton and Dr. Bass, the “Reporting Persons”).  The business address of FMC and FBMA is 399 Park Avenue, New York, New York 10022.  FMC is registered as a broker-dealer under the Securities Exchange Act of 1934 and as an investment adviser under the Investment Advisers Act of 1940, and its principal business is investment management. The sole general partner of FMC is First Manhattan LLC (“FMLLC”), a New York limited liability company, whose business address is 399 Park Avenue, New York, New York 10022. FBMA is registered as an investment adviser under the Investment Advisers Act of 1940, and its principal business is investment management. The sole managing members of FBMA are FMC and Samuel F. Colin (“Dr. Colin”). Dr. Colin is a Senior Managing Director and a limited partner of FMC and a managing member of FMLLC, and his principal business is acting as portfolio manager for the pooled investment vehicles listed in Item 5. His business address is 399 Park Avenue, New York, New York 10022.  The principal business of Mr. Rosenman following his retirement in October 2012 has been to serve on the board of directors of various companies and his principal business address is 8420 Santaluz Village Green E. #100, San Diego, CA 92127.  The principal business of Mr. Biro is to serve as Executive Vice President and Chief Financial Officer of Consolidated Graphics, Inc. and his principal business address is 5858 Westheimer, Suite 200, Houston, TX 77057.  The principal business of Mr. Norton since his retirement in September 2011 has been to serve as an advisor or director, as applicable, of several private and public companies, including Savient

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 10 of 18 Pages

 

 

Pharmaceuticals Inc., the American Foundation for Suicide Prevention and Tapestry Networks and his principal business address is 8 Greenholm Street, Apt. C, Princeton, NJ 08540.  The principal business of Dr. Bass is serving as a Visiting Professor for Pharmaceutical Medicine at the University of Basel, Switzerland, where he is in charge of the development of postgraduate master curricula for Regulatory Affairs within Pharmaceutical Medicine and his principal business address is Boelckestrasse 80, 12101 Berlin, Germany.  The principal business of Mr. Keating is serving a private consultant, providing investment advice and other services to private equity firms and his principal business address is 18 Driftwood Dr., Livingston, NJ 07039.
 
During the five years preceding the filing of this Statement, none of the Reporting Persons, FMLLC or Dr. Colin has been convicted in a criminal proceeding (excluding traffic violations and similar misdemeanors) or a party to a civil proceeding of a judicial or administrative body of competent jurisdiction as a result of which it or any such person was or is subject to a judgment, decree or final order enjoining future violations of, or prohibiting or mandating activities subject to, United States federal or state securities laws or finding any violation with respect to such laws.

 

Item 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION
 
Item 3 of the Schedule 13D is hereby amended and restated in its entirety as follows:
 
The shares of Common Stock referred to in Item 5 as beneficially owned by First Manhattan were purchased by the entities listed therein for an aggregate consideration equal to $108,711,764.  The source of the funds used to acquire the Common Stock reported herein as beneficially owned by First Manhattan is the working capital of the pooled investment vehicles managed by FMC or FBMA and the available funds in the Accounts (as defined in Item 5).  An aggregate of 58,800 of such shares held by certain of the Accounts are held in commingled margin accounts, which may extend margin credit to such Accounts from time to time, subject to applicable federal margin regulations, stock exchange rules and credit policies. In such instances, the positions held in the margin accounts are pledged as collateral security for the repayment of debit balances in the accounts. The margin accounts bear interest at a rate based upon the broker’s call rate from time to time in effect. Because other securities are held in the margin accounts, it is not possible to determine the amounts, if any, of margin used to purchase such shares of Common Stock held by certain of the Accounts as reported herein.
 
Approximately $53,054 in the aggregate was used to purchase the Common Stock reported herein as beneficially owned by Mr. Rosenman.  The source of the funds used to acquire the Common Stock reported herein as beneficially owned by Mr. Rosenman is the personal funds of Mr. Rosenman and none of the funds used to purchase such Common Stock were provided through borrowings of any nature.
 
Approximately $23,940 in the aggregate was used to purchase the Common Stock reported herein as beneficially owned by Mr. Biro.  The source of the funds used to acquire the Common Stock reported herein as beneficially owned by Mr. Biro is the personal funds of Mr. Biro and none of the funds used to purchase such Common Stock were provided through borrowings of any nature.
 
Approximately $20,220 in the aggregate was used to purchase the Common Stock reported herein as beneficially owned by Mr. Norton.  The source of the funds used to acquire the Common Stock reported herein as beneficially owned by Mr. Norton is the personal funds of Mr. Norton and none of the funds used to purchase such Common Stock were provided through borrowings of any nature.
 
CUSIP No. 928551100SCHEDULE 13D/APage 11 of 18 Pages

 

 

Approximately $2,914 in the aggregate was used to purchase the Common Stock reported herein as beneficially owned by Dr. Bass.  The source of the funds used to acquire the Common Stock reported herein as beneficially owned by Dr. Bass is the personal funds of Dr. Bass and none of the funds used to purchase such Common Stock were provided through borrowings of any nature.
 
Approximately $11,616 in the aggregate was used to purchase the Common Stock reported herein as beneficially owned by Mr. Keating.  The source of the funds used to acquire the Common Stock reported herein as beneficially owned by Mr. Keating is the personal funds of Mr. Keating and none of the funds used to purchase such Common Stock were provided through borrowings of any nature.

 

Item 4. PURPOSE OF TRANSACTION
   
Item 4 of the Schedule 13D is hereby amended and supplemented by the addition of the following:
   
On May 22, 2013, FMC entered into an agreement (the “Nomination Agreement”) with Dr. Denner, an indirect beneficial owner of 2,007,099 shares of Common Stock, pursuant to which, among other things, Dr. Denner agreed to become a member of the slate of directors to be nominated to the Issuer’s board by an affiliate of FMC at the 2013 annual meeting of stockholders of the Issuer (the “Annual Meeting”).  The Nomination Agreement also provided that the Denner Parties will not dispose of any shares of Common Stock prior to the conclusion of the Annual Meeting.  The Denner Parties intend to participate in the solicitation of proxies by the Reporting Persons in respect of the Annual Meeting.
   
On May 23, 2013, First Health, L.P. ("First Health"), an affiliate of the Reporting Persons, submitted a formal notice of intent to the Issuer (the "Supplemental Notice") to nominate additional directors at the Annual Meeting.  The Supplemental Notice was made pursuant to First Health's original notice of intent to nominate persons for election to the Board and present a proposal at the Annual Meeting, dated March 7, 2013 (the "Original Notice"), in which First Health reserved the right to nominate one or both of the Alternate/Additional Nominees identified therein if more than six directors are to be elected at the Annual Meeting and additional persons as chosen by First Health if more than eight directors are to be elected at the Annual Meeting.  The Issuer's preliminary proxy statement on Schedule 14A filed with the SEC on May 13, 2013 stated that the Board currently consists of nine directors as a result of the Issuer's appointment of three additional directors following the date of the Original Notice.  As a result, in accordance with its reservation of rights in the Original Notice, First Health submitted the Supplemental Notice to provide notice of its intent to nominate Rolf Bass, Melvin L. Keating and Alexander J. Denner, Ph.D. for election to the Board at the Annual Meeting, in addition to the six nominees identified in the Original Notice and in the preliminary proxy statement on Schedule 14A filed with the SEC on May 1, 2013 by First Health and certain of its affiliates.
 
The foregoing summary of the Supplemental Notice is qualified in its entirety by the full text of the Supplemental Notice, a copy of which is attached as Exhibit 11 to this Schedule 13D.  The foregoing summary of the Nomination Agreement is qualified in its entirety by the full text of the Nomination Agreement, attached as Annex D of the Supplemental Notice filed herewith.  

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 12 of 18 Pages

  

Item 5. INTEREST IN SECURITIES OF THE ISSUER

 

Paragraphs (a), (b) and (c) of Item 5 of the Schedule 13D are hereby amended and restated in their entirety as follows:

(a) The aggregate number and percentage of shares of Common Stock to which this Schedule 13D relates is 9,999,104 shares of Common Stock, constituting approximately 9.9% of the Issuer's currently outstanding Common Stock. Share ownership is reported as of the close of business on May 22, 2013. The aggregate number and percentage of shares of Common Stock reported herein are based upon the 100,665,029 shares of Common Stock outstanding as of April 23, 2013, as reported in the Issuer's Quarterly Report on Form 10-Q for the period ended March 31, 2013, filed with the SEC on May 8, 2013.

FMC may be deemed to beneficially own an aggregate of 9,989,604 shares of Common Stock, or approximately 9.9% of the outstanding Common Stock, which shares include (i) 3,578,675 shares of Common Stock, or approximately 3.6% of the outstanding Common Stock, directly held by First Health, L.P., First Health Limited and First Health Associates, L.P., pooled investment vehicles for which FMC acts as the investment advisor; (ii) 2,706,800 shares of Common Stock, or approximately 2.7% of the outstanding Common Stock, directly held by First BioMed, L.P. and First BioMed Portfolio, L.P., pooled investment vehicles for which FBMA acts as the investment advisor; and (iii) 3,704,129 shares of Common Stock, or approximately 3.7% of the outstanding Common Stock, held by (x) certain investment advisory accounts for which FMC acts as the investment advisor (the "Investment Accounts"), (y) discretionary brokerage accounts for which certain portfolio managers of FMC have discretionary authority (the "Brokerage Accounts"), and (z) accounts held and managed by partners and employees of FMC, including 500,000 shares of Common Stock held in Dr. Colin's personal account and 42,000 shares of Common Stock held by trusts established for the benefit of Dr. Colin's family members (the "Employee Accounts" and together with the Investment Accounts and Brokerage Accounts, the "Accounts").

FBMA may be deemed to beneficially own an aggregate of 2,706,800 shares of Common Stock, or approximately 2.7% of the outstanding Common Stock, which shares are directly held by First BioMed, L.P. and First BioMed Portfolio, L.P., pooled investment vehicles for which FBMA acts as the investment advisor.

Mr. Rosenman may be deemed to beneficially own an aggregate of 5,000 shares of Common Stock, or approximately 0.0% of the outstanding Common Stock. Such shares of Common Stock are held in an Individual Retirement Account for the benefit of Mr. Rosenman.

Mr. Biro may be deemed to directly beneficially own an aggregate of 2,000 shares of Common Stock, or approximately 0.0% of the outstanding Common Stock.

Mr. Norton may be deemed to directly beneficially own an aggregate of 1,500 shares of Common Stock, or approximately 0.0% of the outstanding Common Stock.

Dr. Bass may be deemed to directly beneficially own an aggregate of 100 shares of Common Stock, or approximately 0.0% of the outstanding Common Stock.

Mr. Keating may be deemed to directly beneficially own an aggregate of 900 shares of Common Stock, or approximately 0.0% of the outstanding Common Stock.

 
CUSIP No. 928551100SCHEDULE 13D/APage 13 of 18 Pages

For purposes of the Schedule 13D, the term "First Manhattan" refers to FMC, First Health, L.P., First Health Limited, First Health Associates, L.P., FBMA, First BioMed, L.P., First BioMed Portfolio, L.P. and the Accounts, collectively.

As a result of the nomination by First Health of Dr. Denner (as described in Item 4 of this Amendment No. 5), the Reporting Persons and the Denner Parties may be deemed to be a "group" pursuant to Rule 13d-5(b)(1) promulgated under the Exchange Act. Collectively, the Reporting Persons and the Denner Parties may be deemed to beneficially own 12,006,203 shares of Common Stock, representing approximately 11.9% of the outstanding shares of Common Stock. The Reporting Persons each disclaim beneficial ownership of any shares of Common Stock beneficially owned by the Denner Parties.

(b) FMC has sole voting power and sole dispositive power over the shares held for the accounts of First Health, L.P, First Health Limited, First Health Associates, L.P. and the Investment Accounts, by virtue of FMC’s role as investment adviser to such entities and accounts, and accordingly FMC may be deemed to be a beneficial owner of such shares. FMC has shared voting power and shared dispositive power over the shares held for the accounts of First BioMed, L.P. and First BioMed Portfolio, L.P. by virtue of FMC's role as co-managing member of FBMA, the investment advisor to such entities, and accordingly FMC may be deemed to be a beneficial owner of such shares. In addition, FMC has, or may be deemed to have, shared voting power and shared dispositive power over the shares held for the Brokerage Accounts and Employee Accounts, by virtue of the discretionary authority provided to its portfolio managers and partners and employees, respectively, with respect to such accounts, and accordingly FMC, together with its portfolio managers and partners, may be deemed to be beneficial owners of such shares. FBMA has shared voting power and shared dispositive power over the shares held for the accounts of First BioMed, L.P. and First BioMed Portfolio, L.P. by virtue of FBMA's role as the investment adviser to such entities, and accordingly FBMA may be deemed to be a beneficial owner of such shares. Mr. Rosenman has sole voting power and sole dispositive power over the shares held in the Individual Retirement Account. Mr. Biro has sole voting power and sole dispositive power over the shares beneficially owned by him. Mr. Norton has sole voting power and sole dispositive power over the shares beneficially owned by him. Dr. Bass has sole voting power and sole dispositive power over the shares beneficially owned by him. Mr. Keating has sole voting power and sole dispositive power over the shares beneficially owned by him.

(c) Schedule A hereto (which is incorporated by reference in this Item 5 as if restated in full herein) sets forth all transactions with respect to the shares of Common Stock effected since the filing of Amendment No. 4.

Item 6.

CONTRACTS, ARRANGEMENTS, UNDERSTANDINGS OR RELATIONSHIPS WITH RESPECT TO SECURITIES OF THE ISSUER

 

Item 6 of the Schedule 13D is hereby amended and supplemented by the addition of the following:
 
  The Reporting Persons are parties to an agreement with respect to the joint filing of the Schedule 13D and any amendments thereto.  A copy of such agreement is attached as Exhibit 12 to the Schedule 13D and is incorporated by reference herein.
   
  Other than the Nomination Agreement and joint filing agreement described above, there are no contracts, arrangements, understandings or relationships among the Reporting Persons or between the Reporting Persons and any other person with respect to securities of the Issuer.
 
CUSIP No. 928551100SCHEDULE 13D/APage 14 of 18 Pages

 

 

Item 7. MATERIAL TO BE FILED AS EXHIBITS
 
Item 7 of the Schedule 13D is hereby amended and supplemented by the addition of the following:
 
  Exhibit Description
11 Stockholder Notice of Intent to Nominate Additional Persons for Election as Directors at the 2013 Annual Meeting of the Stockholders of Vivus, Inc., dated May 23, 2013
12 Joint Filing Agreement, dated May 23, 2013

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 15 of 18 Pages

 

SIGNATURES

After reasonable inquiry and to the best of its knowledge and belief, each of the undersigned certifies that the information set forth in this statement is true, complete and correct.

Date: May 23, 2013

 

 

First manhattan co.

By first manhattan llc, General Partner

   
   
  By:  /s/ Neal K. Stearns
  Name: Neal K. Stearns
  Title:   Managing Member
   
   
   
   
 

FIRST BIOMED MANAGEMENT ASSOCIATES, LLC

By FIRST MANHATTAN CO., Co-Managing Member

By FIRST MANHATTAN LLC, General Partner

 

 

  By: /s/ Neal K. Stearns
 

Name: Neal K. Stearns

Title: Managing Member

   
   
  By: /s/ Herman Rosenman
  Herman Rosenman
   
   
  By: /s/ Jon C. Biro
  Jon C. Biro
   
   
  By: /s/ David York Norton
  David York Norton
   
   
  By: /s/ Rolf Bass
  Rolf Bass
   
   
  By: /s/ Melvin L. Keating
  Melvin L. Keating

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 16 of 18 Pages

Schedule A

The following table sets forth all transactions with respect to the shares effected since the filing of Amendment No. 4 by any of the Reporting Persons.  Except as otherwise noted, all such transactions in the table were effected in the open market, and the table includes commissions paid in per share prices.

 

First Manhattan

Date of Transaction Shares Purchased (Sold) Price per Share ($)
04/26/2013 5,200 12.9148
04/26/2013 5,200 12.9148
04/26/2013 5,200 12.9148
04/26/2013 4,400 12.9148
04/26/2013 1,000 12.9016
04/26/2013 1,000 12.9016
04/26/2013 5,000 12.9016
04/26/2013 2,500 12.9016
04/26/2013 3,000 12.9016
04/26/2013 4,000 12.9016
04/26/2013 200 12.9016
04/26/2013 1,000 12.9016
04/26/2013 1,500 12.9016
04/26/2013 2,500 12.9016
04/26/2013 1,000 12.9016
04/26/2013 800 12.9016
04/26/2013 3,500 12.9016
04/26/2013 700 12.9016
04/26/2013 200 12.9016
04/26/2013 2,000 12.9016
04/26/2013 3,000 12.9016
04/26/2013 1,000 12.9016
04/26/2013 2,000 12.9016
04/26/2013 1,000 12.9016
04/26/2013 1,000 12.9016
04/26/2013 2,500 12.9016
04/26/2013 700 12.9016
04/26/2013 3,900 12.9016
04/26/2013 3,000 12.9016
04/26/2013 2,500 12.9016
04/26/2013 1,100 12.9016
04/26/2013 200 12.9016
04/26/2013 1,500 12.9016
04/26/2013 1,000 12.9016
04/26/2013 600 12.9016
04/26/2013 700 12.9016
04/26/2013 800 12.9016
04/26/2013 1,000 12.9016
04/26/2013 600 12.9016
04/26/2013 1,000 12.9016
04/26/2013 900 12.9148
04/26/2013 1,900 12.9148
04/26/2013 100 12.9148
04/26/2013 100 12.9148
 
CUSIP No. 928551100SCHEDULE 13D/APage 17 of 18 Pages

 

 

04/26/2013 2,300 12.9148
04/26/2013 17,800 12.9148
04/26/2013 79,500 12.9211
04/26/2013 4,900 12.9148
04/26/2013 1,200 12.9148
04/26/2013 2,500 12.9148
04/26/2013 2,700 12.9016
04/26/2013 2,500 12.9016
04/26/2013 1,300 12.9148
04/26/2013 3,200 12.9148
04/26/2013 300 12.9016
04/26/2013 200 12.9016
04/26/2013 500 12.9016
04/26/2013 2,300 12.9148
04/26/2013 200 12.9148
04/26/2013 600 12.9148
04/26/2013 500 12.9016
04/26/2013 5,000 12.9148
04/26/2013 4,000 12.9016
04/26/2013 1,300 12.9016
04/26/2013 800 12.9016
04/26/2013 1,300 12.9016
04/26/2013 1,300 12.9016
04/26/2013 1,300 12.9016
04/26/2013 1,000 12.9016
04/26/2013 4,100 12.9148
04/26/2013 300 12.9016
04/26/2013 1,600 12.9148
04/29/2013 700 13.1093
04/29/2013 5,800 13.1093
04/29/2013 1,900 13.1093
04/29/2013 12,400 13.1093
04/29/2013 10,800 13.1093
04/29/2013 5,600 13.1093
04/29/2013 4,000 13.1093
04/29/2013 5,400 13.1093
04/29/2013 5,400 13.1093
04/29/2013 6,900 13.1093
04/29/2013 1,000 13.1093
04/29/2013 100 13.1093
04/29/2013 100 13.1093
04/29/2013 7,000 13.1093
04/29/2013 2,300 13.1093
04/29/2013 2,000 13.0429
04/29/2013 1,000 13.0429
04/29/2013 5,000 13.1093
04/29/2013 1,100 13.1093
04/29/2013 7,100 13.1093
04/29/2013 55,000 13.1093
04/29/2013 1,400 13.1093
04/29/2013 3,300 13.1093
04/29/2013 3,700 13.1093
04/29/2013 100 13.1093

 

 
CUSIP No. 928551100SCHEDULE 13D/APage 18 of 18 Pages

 

 

04/30/2013 4,400 13.16
04/30/2013 1,000 13.16
05/01/2013 19,328 12.9527
05/16/2013 3,900 12.5034
05/16/2013 3,900 12.5034
05/16/2013 1,400 12.5034
05/16/2013 2,700 12.5034
05/16/2013 100 12.5034
05/16/2013 4,400 12.5034
05/16/2013 800 12.5034
05/16/2013 800 12.5034
05/16/2013 800 12.5034
05/16/2013 1,500 12.5034
05/16/2013 2,700 12.5034
05/20/2013 1,500 12.8659
05/20/2013 1,400 12.8659
05/20/2013 1,400 12.8659
05/20/2013 900 12.8659
05/20/2013 2,000 12.8659
05/20/2013 4,000 12.8659
05/20/2013 4,000 12.8659
05/20/2013 3,400 12.8659
05/20/2013 3,400 12.8659
05/20/2013 2,500 12.8659
05/20/2013 100 13.04
05/20/2013 26,600 12.8659
05/20/2013 151,400 12.8659
05/20/2013 47,400 12.8659

 

Mr. Norton

 

Date of Transaction Shares Purchased (Sold) Price per Share ($)
05/22/2013 1,500 13.48

 

Dr. Bass

 

Date of Transaction Shares Purchased (Sold) Price per Share ($)
06/28/2012 100 29.14

 

Mr. Keating

 

Date of Transaction Shares Purchased (Sold) Price per Share ($)
05/20/2013 800 12.92
05/21/2013 100 12.80

 

EX-99 2 p13-1329exhibit11.htm EXHIBIT 11

EXHIBIT 11

First Health, L.P.
c/o First Manhattan Co.
399 Park Avenue
New York, New York 10022

May 23, 2013

Via Electronic Mail and FedEx

VIVUS, Inc.
1172 Castro Street
Mountain View, CA 94040
Attention: John L. Slebir, Vice President Business
                 Development, General Counsel and Corporate Secretary

 

Re:Stockholder Notice of Intent to Nominate Additional Persons for Election as Directors at the 2013 Annual Meeting of the Stockholders of VIVUS, Inc. (the "Corporation").

 

Ladies and Gentlemen:

First Health, L.P. ("FH LP" or the "Record Holder") hereby submits this supplemental notice (the "Supplemental Notice") on the date hereof. The purpose of this Supplemental Notice, as more fully set forth herein, is to provide notice to the Corporation of the Record Holder's intent to nominate the three individuals named below for election to the Board of Directors of the Corporation (the "Board") as directors at the 2013 annual meeting of stockholders of the Corporation (including any adjournment or postponement thereof or any special meeting held in lieu thereof, the "Annual Meeting").

This Supplemental Notice is being made pursuant to the Record Holder's original notice of intent to nominate persons for election to the Board and present a proposal at the Annual Meeting (the "Original Notice"), dated March 7, 2013, in which the Record Holder reserved the right to nominate one or both of the Alternate/Additional Nominees identified therein if more than six directors are to be elected at the Annual Meeting and additional persons as chosen by the Record Holder if more than eight directors are to be elected at the Annual Meeting.

According to the Corporation's preliminary proxy statement on Schedule 14A filed with the Securities and Exchange Commission (the "SEC") on May 13, 2013 (the "Company's Preliminary Proxy Statement"), the Board currently consists of nine directors whose terms will expire at the Annual Meeting. Therefore, pursuant to its reservation of rights in the Original Notice, the Record Holder is hereby providing notice to the Corporation that it intends to nominate three individuals for election to the Board as directors, Rolf Bass ("Dr. Bass"), Melvin L. Keating ("Mr. Keating") and Alexander J. Denner ("Dr. Denner", and collectively with Dr. Bass and Mr. Keating, the "New Nominees" and each a "New Nominee"), in addition to the six nominees identified in the Original Notice (the "Existing Nominees" and together with the New Nominees, the "Nominees") and in the preliminary proxy statement on Schedule 14A filed with the SEC on May 1, 2013 by the Record Holder and certain of its affiliates.

 
 

 

Dr. Bass and Mr. Keating were identified in the Original Notice as Alternate/Additional Nominees. All information required to provide adequate notice and information to the Corporation regarding the intended nomination of Dr. Bass and Mr. Keating and to comply with all notification and other requirements applicable to the Corporation relating to Dr. Bass and Mr. Keating was included in the Original Notice and in all material respects has not changed as of the date of this Supplemental Notice (other than as provided in this Supplemental Notice). Certain information relating to Dr. Denner is set forth in Annex A hereto. Attached as Annex B is the consent signed by Dr. Denner evidencing a willingness to being named in a proxy statement as a nominee and to serve as a director, if elected.

Dr. Denner has an interest in the election of directors at the Annual Meeting as a New Nominee. As of the date hereof, Dr. Denner may be deemed the beneficial owner of an aggregate of 2,007,099 shares of common stock, par value $0.001 per share, of the Corporation (the "Common Stock"), by virtue of his being a principal of Sarissa Capital Management LP ("Sarissa Management"), the investment advisor to Sarissa Capital Offshore Master Fund LP, a Cayman Islands exempted limited partnership ("Sarissa Offshore"), which directly holds 1,024,623 shares of Common Stock, and Sarissa Capital Domestic Fund LP, a Delaware limited partnership ("Sarissa Domestic" and together with Sarissa Management, Sarissa Offshore and Dr. Denner, the "Denner Parties" and each a "Denner Party"), which directly holds 982,476 shares of Common Stock. The principal business address of each Denner Party (other than Sarissa Offshore) is 660 Steamboat Road, 3rd Floor, Greenwich, CT 06830. The principal business address of Sarissa Offshore is c/o Ogier Fiduciary Services (Cayman) Limited, 89 Nexus Way, Camana Bay, Grand Cayman KY1-9007, Cayman Islands. Annex C sets forth each transaction in the shares of Common Stock or other securities of the Corporation effected by the New Nominees and the Denner Parties, as applicable, during the past two years. Messrs. Keating and Bass and the Denner Parties may be deemed to have formed a "group" within the meaning of Section 13(d)(3) of the Securities Exchange Act of 1934 with the Record Holder and its affiliates (as named in the Original Notice) and certain of the Existing Nominees. Collectively, the group (and each member thereof) may be deemed to have beneficial ownership of a combined 12,006,203 shares of Common Stock, constituting approximately 11.9% of the Corporation's outstanding shares of Common Stock. The percentages contained herein are based upon 100,665,029 shares of Common Stock outstanding as of April 23, 2013, as reported in the Issuer's Quarterly Report on Form 10-Q filed with the SEC on May 8, 2013.

Except as disclosed in this Supplemental Notice, Dr. Denner does not have any substantial interest, direct or indirect, by security holdings or otherwise, in the matters to be brought before the Annual Meeting pursuant to the Original Notice and this Supplemental Notice. If elected, Dr. Denner would be considered an independent director of the Corporation under (i) the NASDAQ Listing Rules, (ii) paragraph (a)(1) of Item 407 of Regulation S-K, (iii) the Corporate Governance Guidelines of the Corporation and (iv) the Code of Business Conduct and Ethics of the Corporation. There are no business, financial, scientific or other relationships between Dr. Denner and any existing or potential collaborators, license partners, suppliers or competitors of the Corporation.

Dr. Denner has entered into a nominee agreement pursuant to which the Record Holder has agreed to pay the costs of soliciting proxies in connection with the Annual Meeting, and to defend and indemnify Dr. Denner against, and with respect to, any losses that may be incurred by him in the event he becomes a party to litigation based on his nomination as a candidate for election to the board of directors of the Corporation and the solicitation of proxies in support of his election. Dr. Denner will not receive any compensation from the Record Holder or its affiliates for his services as director of the Corporation if elected. If elected, Dr. Denner will be entitled to such compensation from the Corporation as is consistent with the Corporation's practices for services of non-employee directors. A copy of the nominee agreement between the Record Holder and Dr. Denner is attached in Annex D.

2
 

 

The Record Holder hereby states with respect to each Denner Party, as applicable, that, to the knowledge of the Record Holder, other than as described in this Notice:

(i)such Denner Party is not, nor was within the past year, a party to any contract, arrangement or understanding with any person with respect to any securities of the Corporation, including, but not limited to, joint ventures, loan or option arrangements, puts or calls, guarantees against loss or guarantees of profit, division of losses or profits, or the giving or withholding of proxies;
(ii)(a) such Denner Party has no position or office with the Corporation, and has no arrangement or understanding with any other person pursuant to which he was selected to be a nominee, if applicable, other than with respect to the Nominee Agreement described herein; (b) neither such Denner Party nor any of his or its "associates" (which term, for purposes of this Supplemental Notice, shall have the meaning ascribed thereto in Rule 14a-1 of Regulation 14A of the Securities Exchange Act of 1934, as amended (the "Exchange Act")) is a party to any arrangement or understanding with any person with respect to (1) any future employment by the Corporation or its affiliates or (2) any future transactions to which the Corporation or any of its affiliates will or may be a party; (c) there were no transactions since January 1, 2012 nor are there any currently proposed involving such Denner Party or any of his or its associates in which the Corporation was or is to be a participant and in which such Denner Party, any of his or its associates, or any of their respective immediate family members or any persons sharing their respective households, have or will have a direct or indirect material interest that would require disclosure under Item 404(a) of Regulation S-K under the Securities Act of 1933, as amended ("Regulation S-K"); and (d) there are no material proceedings to which such Denner Party or any of his or its associates is a party adverse to the Corporation or any of its subsidiaries or has a material interest adverse to the Corporation or any of its subsidiaries;
(iii)none of the entities or organizations referred to in Annex A with which any Denner Party has been involved during the past five years is a parent, subsidiary or other affiliate of the Corporation;
(iv)except as set forth in this Notice (including Annex C hereto), (a) such Denner Party and each of his or its associates is not a record owner or direct or indirect beneficial owner of any securities of the Corporation or any parent or subsidiary of the Corporation; and (b) such Denner Party has not purchased or sold any securities of the Corporation within the past two years;
(v)neither such Denner Party nor any of his or its associates has received any fees earned or paid in cash, stock awards, option awards, non-equity incentive plan compensation, changes in pension value or nonqualified deferred compensation earnings or any other compensation from the Corporation during the Corporation's last completed fiscal year, or is subject to any other compensation arrangement described in Item 402 of Regulation S-K;
3
 

 

(vi)(a) there are no relationships involving such Denner Party or any of his or its associates that would have required disclosure under Item 407(e)(4) of Regulation S-K had that Denner Party been a director of the Corporation; (b) there are no events required to be disclosed under Item 401(f) of Regulation S-K that have occurred during the past ten years and that are material to an evaluation of the ability or integrity of any Denner Party; (c) there are no "family relationships" (as defined in Item 401(d) of Regulation S-K) between any Denner Party and any director or executive officer of the Corporation or person known to the Record Holder to be nominated by the Corporation to become a director or executive officer; and (d) such Denner Party has not been convicted in a criminal proceeding (excluding traffic violations or similar misdemeanors) in the past ten years; and
(vii)other than the Nominee Agreement and an oral understanding between the Record Holder and certain of its affiliates and the Denner Parties regarding the coordination of their respective filing obligations under Sections 13 and 16 of the Exchange Act, there are no arrangements or understandings between the Record Holder and any Denner Party and any other person or persons pursuant to which the nominations are to be made by the Record Holder.

The Record Holder understands that certain information regarding the Annual Meeting (including, but not limited to, the record date, voting shares outstanding and date, time and place of the Annual Meeting) and the Corporation (including, but not limited to, its various committees and proposal deadlines and the beneficial ownership of the Corporation's securities) is currently set forth in the Company's Preliminary Proxy Statement and in certain other SEC filings made or to be made by the Corporation and third parties under Sections 13 and 16 of the Exchange Act, and that additional information will be set forth in the Corporation's definitive proxy statement on Schedule 14A, to be filed with the SEC by the Corporation with respect to the Annual Meeting. To the extent the Corporation believes any such information is required to be set forth herein, the Record Holder hereby refers the Corporation to such filings. The Record Holder accepts no responsibility for any information set forth in any such filings not made by the Record Holder.

The Annexes are hereby incorporated into and made a part of this Supplemental Notice. Accordingly, all matters disclosed in any part of this Supplemental Notice, including the Annexes, shall be deemed disclosed for all purposes of this Supplemental Notice. All capitalized terms appearing in one of the Annexes that are not defined in such Annex shall have the meaning given in the body of this Supplemental Notice or in another of the Annexes, as applicable.

The Record Holder believes that this Supplemental Notice, together with the Original Notice, is sufficient to provide adequate notice and information to the Corporation regarding the intended nomination of the New Nominees and complies with all notification and other requirements applicable to the Corporation, if any. If, however, you believe that this Supplemental Notice for any reason does not comply with such requirements or is otherwise insufficient or defective in any respect, the Record Holder requests that you so notify it on or prior to 6:00 p.m. (Eastern Standard Time) on May 24, 2013 by contacting Marc Weingarten, Esq. or David Rosewater, Esq. of Schulte Roth & Zabel LLP by telephone at (212) 756-2280 or (212) 756-2208, respectively. Please be advised that neither the delivery of this Supplemental Notice nor the delivery of additional information, if any, provided by or on behalf of the Record Holder, any of its affiliates or any of the New Nominees to the Corporation from and after the date hereof shall be deemed to constitute (i) an admission by the Record Holder, any of its affiliates or any of the New Nominees that this Supplemental Notice is in any way defective, (ii) an admission as to the legality or enforceability of any particular provision of the Amended and Restated Bylaws of the Corporation (the "Bylaws") or any other matter or (iii) a waiver by the Record Holder, any of its affiliates or any of the New Nominees of the right to, in any way, contest or challenge the enforceability of any provision of the Bylaws, or of any other matter.

4
 

 

 

 

Very truly yours,

 

 

  First Health, L.P.
 
By:

First Manhattan Co., Inc., its general partner
     
  By:

/s/ Neal K. Stearns

    Name: Neal K. Stearns
    Title: Vice President and Secretary

 

 

 

 

 

 

5
 

ANNEX A

 

 

Information about Dr. Denner

 

Name: Dr. Denner
Age: 43
Business Address:

660 Steamboat Road, 3rd Floor

Greenwich, CT 06830

Residence Address: [REDACTED]
Principal Occupation: See below

 

Dr. Denner founded Sarissa Capital Management LP, a registered investment advisor, in 2012.  Sarissa Capital focuses on enhancing shareholder value of portfolio companies. From 2006 to November 2011, Dr. Denner served as a Senior Managing Director of Icahn Capital, an entity through which Carl C. Icahn conducts his investment activities. Prior to that, he served as a portfolio manager at Viking Global Investors, a private investment fund, and Morgan Stanley Investment Management, a global asset management firm.

Dr. Denner is a director of Biogen Idec Inc., a publicly traded biopharmaceutical company, where he has served since 2009, and Enzon Pharmaceuticals, Inc., a publicly traded biopharmaceutical company, where he has also served since 2009. During the past five years, Dr. Denner has served as a director of the following publicly-traded companies: Amylin Pharmaceuticals, Inc., a publicly traded biopharmaceutical company, from 2009 until 2012; ImClone Systems Incorporated, a publicly traded biopharmaceutical company where he was Chairman of Executive Committee, from 2006 until its acquisition in 2008; and Adventrx Pharmaceuticals, Inc., a publicly traded biopharmaceutical company, from 2006 until 2009.

Dr. Denner received his S.B. degree from the Massachusetts Institute of Technology and his M.S., M.Phil. and Ph.D. degrees from Yale University.

Dr. Denner's qualifications as director include his experience as a director of several publicly traded biopharmaceutical companies. He also has extensive experience as an investor, particularly with respect to healthcare companies, and possesses broad knowledge of the life sciences industry and corporate governance matters.

 

A-1
 

 

 

ANNEX B

 

Written Consent of Dr. Denner

 

[See attached]

 

B-1
 

 

 

 

ANNEX C

 

Two year transaction history of the New Nominees and Denner Parties in the Corporation's Securities

 

Set forth in the this Annex C are all transactions effected by the New Nominees and Denner Parties, as applicable, in the Corporation's securities within the past two years. Unless otherwise noted, all such transactions were effected in the open market.

 

Denner Parties

Common Stock

Trade Date Amount Acquired (Sold)
5/8/2013 8,500
5/9/2013 172,498
5/10/2013 178,100
5/14/2013 350,000
5/15/2013 100,000
5/16/2013 151,563
5/17/2013 100,000
5/20/2013 238,026
5/21/2013 108,412
5/22/2013 600,000

 

Dr. Bass

Common Stock

Trade Date Amount Acquired (Sold)
6/28/2012 100

 

Mr. Keating

Common Stock

Trade Date Amount Acquired (Sold)
5/20/2013 800
5/21/2013 100

 

C-1
 

 

 

ANNEX D

Nominee Agreement

 

First Manhattan Co.

399 Park Avenue

New York, New York 10022

 

May 22, 2013

Dr. Alexander J. Denner, Ph.D.
c/o Sarissa Capital Management LP
660 Steamboat Road, 3rd Floor

Greenwich, CT 06830

Dear Dr. Denner:

This will confirm our understanding as follows:

You agree that you are willing, should we so elect, to become a member of a slate of nominees (the "Slate") of an affiliate of the undersigned (the "Nominating Party"), to stand for (i) election as a director of Vivus, Inc. (the "Company") in connection with a proxy solicitation (the "Proxy Solicitation") to be conducted by the undersigned and certain other parties or the Company in respect of the 2013 annual meeting of stockholders of the Company expected to be held in June 2013 (including any adjournment or postponement thereof or any special meeting held in lieu thereof, the "Annual Meeting") or (ii) appointment or election by other means. You further agree to serve as a director of the Company if so elected or appointed. The undersigned agrees on behalf of the Nominating Party to pay the costs of the Proxy Solicitation.

You understand that it may be difficult, if not impossible, to replace a nominee who, such as yourself, has agreed to serve on the Slate and, if elected or appointed, as a director of the Company if such nominee later changes his mind and determines not to serve on the Slate or, if elected or appointed, as a director of the Company. Accordingly, the undersigned is relying upon your agreement to serve on the Slate and, if elected or appointed, as a director of the Company. In that regard, you are being supplied with a questionnaire (the "Questionnaire") in which you will provide the undersigned with information necessary for the Nominating Party to make disclosure required by the bylaws or any other applicable documents of the Company to the Company and to use in creating the Proxy Solicitation materials to be sent to stockholders of the Company and filed with the Securities and Exchange Commission in connection with the Proxy Solicitation. You also agree to provide us any additional information necessary for the Nominating Party to make appropriate disclosure to the Company and to use in creating the proxy materials to be sent to stockholders of the Company and filed with the Securities and Exchange Commission in connection with the Proxy Solicitation ("Supplemental Information").

You agree that you will (i) promptly complete and sign the Questionnaire and return a hardcopy of it, (ii) your responses in the Questionnaire will be true, complete and correct in all respects, and (iii) you will provide any additional information as may be requested by the undersigned. In addition, you agree that, concurrently with your execution of this letter, you will execute and return the attached instrument confirming that you consent to being nominated for election as a director of the Company and, if elected, consent to serving as a director of the Company. Upon being notified that we have chosen you, we may forward your consent and your completed Questionnaire (and/or summaries thereof) to the

D-1
 

 

Company, and we may at any time, in our discretion, disclose such information, as well as the existence and contents of this letter. Furthermore, you understand that we may elect, at our election and expense, to conduct a background and reference check on you and you agree to complete any and all necessary authorization forms or other documents required in connection therewith.

You further agree that until the conclusion of the Annual Meeting (i) you will (x) and will cause your agents, representatives and affiliates to, treat confidentially all information relating to the Proxy Solicitation which is non-public, confidential or proprietary in nature and (y) accept responsibility for any disclosure, publication or other use of such information by you and your agents, representatives and affiliates; (ii) you will not, and will cause your agents, representatives and affiliates not to, issue or otherwise make any public statement or any other form of public communication relating to the Company or the Proxy Solicitation without the prior approval of the undersigned, in each case, other than (A) in response to any inquiry or public statement, provided that (x) any such statement or form of communication made by you relating to the Company or the Proxy Solicitation will be substantially consistent with the plans and proposals of, and your prior discussions with, the Nominating Party, (y) to the extent you are provided with sufficient time to respond to an inquiry or public communication, you will use reasonable efforts to consult with the undersigned in connection with any such statement or form of communication by you in response thereto, and (z) you will obtain prior approval from the undersigned of any such statement or form of communication made by you relating to the Nominating Party other than with respect to its plans or proposals for the Company including the Proxy Solicitation, or (B) as may be required by any applicable law (based on the advice of your legal counsel); (iii) you will not, and will cause your agents, representatives and affiliates not to, dispose of any Securities of the Company without the prior approval of the undersigned, which approval shall not be unreasonably withheld or delayed and (iv) you will not, and will cause your agents, representatives and affiliates not to, acquire any Securities of the Company which would cause you, the Nominating Party and the other members of the Slate (and each of the foregoing person’s respective affiliates) to collectively beneficially own 15% or more of the outstanding equity securities of the Company or to otherwise become an “Acquiring Person” or be subject to similar consequences under any poison pill currently in place or hereafter adopted by the Company, in each case, without the prior approval of the undersigned, which approval shall not be unreasonably withheld or delayed. For purposes of the forgoing sentence, “Securities” shall mean equity securities of the Company, options to purchase or sell equity securities of the Company, and swaps, synthetics and other derivative securities or instruments, the value of which is solely and directly related to equity securities of the Company.

The undersigned agrees on behalf of the Nominating Party that the undersigned will defend, indemnify and hold you harmless from and against any and all losses, claims, damages, penalties, judgments, awards, settlements, liabilities, costs, expenses and disbursements (including, without limitation, reasonable attorneys' fees, costs, expenses and disbursements) incurred by you in the event that you become a party, or are threatened to be made a party, to any civil, criminal, administrative or arbitrative action, suit or proceeding with a third party, and any appeal thereof, (i) relating to your role as a nominee for director of the Company on the Slate, or (ii) otherwise arising from or in connection with or relating to the Proxy Solicitation. Your right of indemnification hereunder shall continue after the AnnualMeeting has taken place but only for events that occurred prior to the Annual Meeting and subsequent to the date hereof. Anything to the contrary herein notwithstanding, the undersigned is not indemnifying you for any action taken by you or on your behalf that occurs prior to the date hereof or subsequent to the conclusion of the Proxy Solicitation or such earlier time as you are no longer a nominee on the Slate or for any actions taken by you as a director of the Company, if you are elected or appointed.

D-2
 

 

Nothing herein shall be construed to provide you with indemnification (i) if you are found to have engaged in a violation of any provision of state or federal law in connection with the Proxy Solicitation, unless you demonstrate that your action was taken in good faith and in a manner you reasonably believed to be in or not opposed to the best interests of electing the Slate; (ii) if you acted in a manner that constitutes gross negligence or willful misconduct; or (iii) if you provided false or misleading information, or omitted material information, in the Questionnaire or otherwise in connection with the Proxy Solicitation. You shall promptly notify the undersigned in writing in the event of any third-party claims actually made against you or known by you to be threatened if you intend to seek indemnification hereunder in respect of such claims. In addition, upon your delivery of notice with respect to any such claim, the undersigned shall have the option, at any time, to assume control of the defense of such claim with counsel chosen by the undersigned. The undersigned shall not be responsible for any settlement of any claim against you covered by this indemnity without its prior written consent. However, the undersigned may not enter into any settlement of any such claim without your consent unless such settlement includes (i) no admission of liability or guilt by you, and (ii) a release of you from any and all liability in respect of such claim.

Each of us recognizes that should you be elected or appointed to the Board of Directors of the Company all of your activities and decisions as a director will be governed by applicable law and subject to your fiduciary duties, as applicable, to the Company and to the stockholders of the Company and, as a result, that there is, and can be, no agreement between you and the undersigned that governs the decisions which you will make as a director of the Company.

This letter and the attached consent set forth the entire agreement between the undersigned and you as to the subject matter contained herein, and cannot be amended, modified or terminated except by a writing executed by the undersigned and you. This letter shall be governed by the laws of the State of New York, without giving effect to principles of conflicts of law.

D-3
 

 

 

Should the foregoing agree with your understanding, please so indicate in the space provided below, whereupon this letter will become a binding agreement between us.

 

  Very truly yours,
   
  FIRST MANHATTAN CO.
   
  By: First Manhattan LLC, General Partner
   
  By: /s/ Neal K. Stearns
  Name: Neal K. Stearns
  Title: Managing Member
     
Agreed to and accepted as    
of the date first written above:    
     
s/ Alexander J. Denner    
Name:   Alexander J. Denner    
       

 

EX-12 3 p13-1329exhibit12.htm EXHIBIT 12

EXHIBIT 12

 

Joint Filing Agreement, dated May 23, 2013

 

PURSUANT TO RULE 13d-1(k)

 

The undersigned acknowledge and agree that the foregoing statement on Schedule 13D is filed on behalf of each of the undersigned and that all subsequent amendments to this statement on Schedule 13D may be filed on behalf of each of the undersigned without the necessity of filing additional joint filing agreements. The undersigned acknowledge that each shall be responsible for the timely filing of such amendments, and for the completeness and accuracy of the information concerning it contained herein and therein, but shall not be responsible for the completeness and accuracy of the information concerning the others, except to the extent that it knows that such information is inaccurate.

 

Dated: May 23, 2013

 

 

First manhattan co.

By first manhattan llc, General Partner

   
   
  By:  /s/ Neal K. Stearns
  Name: Neal K. Stearns
  Title:   Managing Member
   
   
 

FIRST BIOMED MANAGEMENT ASSOCIATES, LLC

By FIRST MANHATTAN CO., Co-Managing Member

By FIRST MANHATTAN LLC, General Partner

   
  By: /s/ Neal K. Stearns
 

Name: Neal K. Stearns

Title: Managing Member

   
   
  By: /s/ Herman Rosenman
  Herman Rosenman
   
   
  By: /s/ Jon C. Biro
  Jon C. Biro
   
   
  By: /s/ David York Norton
  David York Norton
   
   
  By: /s/ Rolf Bass
  Rolf Bass

   
   
  By: /s/ Melvin L. Keating
  Melvin L. Keating