) recently provided guidance for 2013. ViroPharma expects
net product sales between $450 million and $475 million in 2013
on a worldwide basis. Cinryze sales are expected in the
range of $390 million - $400 million in North America.
ViroPharma expects sales from its key product Cinryze to come
around $321 million in 2012, towards the lower end of the
company's previously announced guidance of $320 million - $335
million. Approximately $311 to $312 million of total Cinryze
sales was attributed to actual patient demand while an increase
in channel inventories accounted for the remainder.
ViroPharma expects channel inventories to return to normal
levels in the first quarter of 2013.
Meanwhile, the commercial launches of Cinryze, Buccolam and
Plenadren in Europe are gaining traction and will contribute to
top line growth in the coming years.
ViroPharma is also upbeat about its pipeline. The company and
) initiated a phase IIb study in late December to evaluate the
safety and efficacy of a subcutaneous administration of Cinryze
in combination with Halozyme's Enhanze technology.
ViroPharma projects research and development (R&D) and
selling, general and administrative (SG&A) expenses to come
around $240 - $260 million in 2013.
We expect the company to meet its target in 2013 driven by the
continued success of Cinryze. However, we note that
Vancocin has been the major growth driver for the company in the
last few years. Although the prospects for Cinryze look bright
for ViroPharma, we remain concerned about the company's
dependence primarily on Cinryze for growth. we remain concerned
about the decline in Vancocin sales due to increasing generic
Hence, we prefer to be on the sidelines as of now and have a
Neutral recommendation on ViroPharma which carries a Zacks #3
Rank (Hold). Pharma stocks which currently look attractive are
Valeant Pharmaceuticals International
Ironwood Pharmaceuticals, Inc.
) which carry a Zacks #1 Rank (Strong Buy).
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