) first quarter 2013 adjusted loss (excluding special items but
including stock-based compensation) came in at 7 cents per share
compared to year-ago earnings of 18 cents. The Zacks Consensus
Estimate was 4 cents. The year-over-year earnings decline was
primarily due to lower revenues.
Quarterly revenues, which decreased 21.8% year over year to
$107.1 million, were marginally short of the Zacks Consensus
Estimate of $108 million. The decline in revenues was primarily
due to decreased Vancocin sales in the face of generic
competition, which was partially offset by growth in Cinryze
Cinryze sales increased 46% from the prior-year quarter to
$99.5 million during the first quarter of 2013, driven by higher
demand. Net sales in the US net sales grew by 44% $97 million. Of
the total sales, approximately $91 million was attributed to
patient demand while the remaining represented additional
inventory in the channel.
Sales from Europe came in at $7 million, up 152% year over
year. Cinryze accounted for $2.7 million, Buccolam $2.5 million
and Plenadren accounted for $0.4 million.
On the other hand, Vancocin net sales plummeted 93.9% in the
quarter to $4.0 million. The decline was attributable to the
entry of generic versions of the drug in the US market in Apr
Research and development (R&D) expenses increased 11.7%
during the quarter to $17.2 million. The increase was
attributable to ViroPharma's efforts to develop its pipeline.
Selling, general and administrative (SG&A) expenses
amounted to $42.7 million, up 12.6% due to costs related to the
launch of Cinryze and Buccolam in the EU and additional Cinryze
commercialization costs in the US.
2013 Outlook Lowered
ViroPharma lowered its guidance for 2013. The company now
expects net product sales in a range of $440 million - $465
million, down from the earlier projection of $450 - $475 million.
The Zacks Consensus Estimate of $463 million is within the
company's guidance range.
Nevertheless, the company maintained its US Cinryze sales
guidance of $390-$400 million. Further, ViroPharma continues to
expect combined R&D and SG&A expenses in the range of
$240 - $260 million.
ViroPharma is also upbeat about its pipeline. The company and
) initiated a phase IIb study in late Dec 2012 to evaluate the
safety and efficacy of a subcutaneous version of Cinryze. The
company expects to complete enrollment shortly. ViroPharma is
also developing other pipeline candidates such as maribavir.
ViroPharma carries a Zacks Rank #3 (Hold). Right now, stocks
which look well placed include
Onyx Pharmaceuticals, Inc
). Both stocks carry a Zacks Rank #1 (Strong Buy).
HALOZYME THERA (HALO): Free Stock Analysis
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VIROPHARMA (VPHM): Free Stock Analysis Report
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