) reported a net income of a penny in the second quarter of 2013
compared to a loss of 6 cents per share in the year-ago quarter.
The Zacks Consensus Estimate was 2 cents per share.
Quarterly revenues, which increased 9.5% year over year to
$103.7 million, were marginally short of the Zacks Consensus
Estimate of $105 million. The year-over-year growth in revenues
was fuelled by Cinryze in the U.S. and higher product sales in
Cinryze sales increased 23% from the prior-year quarter to
$95.0 million during the second quarter of 2013, driven by higher
demand and price growth.
Net sales in the US grew by 22% to $91.4 million. Of the total
sales, approximately $96 million was attributed to patient
demand, which was partially offset by $5 million of drawdown in
wholesaler channel inventory.
On the other hand, Vancocin net sales plummeted 75.0% in the
quarter to $4.0 million. The decline was attributable to the
entry of generic versions of the drug in the U.S. in Apr
Sales from Europe doubled year over year to $8 million.
Research and development (R&D) expenses increased 3.2%
during the quarter to $17.2 million. The increase was
attributable to ViroPharma's efforts to develop its pipeline
including the subcutaneous formulation of Cinryze and
Selling, general and administrative (SG&A) expenses
amounted to $46.2 million, up 13.1% year over year.
2013 Outlook Reiterated
ViroPharma reiterated its guidance for 2013. The company
continues to expect net product sales in the range of $440
million - $465 million. The Zacks Consensus Estimate of $449
million is within the company's guidance range.
The company projects U.S. Cinryze sales of $390-$400 million.
Further, ViroPharma continues to expect combined R&D and
SG&A expenses in the range of $240 - $260 million.
Concurrent with second-quarter results, ViroPharma announced
that it is discontinuing its phase II study on a subcutaneous
version of Cinryze with partner
). The study was discontinued as a number of patients developed
non-neutralizing anti-rHuPH20 antibodies.
Nevertheless, ViroPharma developed a low-volume subcutaneous
formulation of Cinryze from this phase II study and plans to
evaluate the same in a subsequent phase III study.
Meanwhile, ViroPharma is evaluating maribavir in two phase II
studies as a first line treatment of cytomegalovirus (CMV)
viremia as well as for the treatment of resistant/refractory CMV.
The company expects to complete enrolment in these studies in mid
We were disappointed by the second quarter results, which
missed our expectations. We remind investors that the growth
story for ViroPharma revolves around Cinrzye. Hence, the
discontinuation of a phase II study on the label expansion of its
key drug is a clear setback for the company. We expect
investor focus to remain on further updates on the same.
Shares reacted negatively to the news and lost 6.76%
ViroPharma carries a Zacks Rank #3 (Hold). Right now, stocks
which look well placed include
Jazz Pharmaceuticals, Inc.
). Both carry a Zacks Rank #2 (Buy).
HALOZYME THERA (HALO): Free Stock Analysis
JAZZ PHARMACEUT (JAZZ): Free Stock Analysis
SHIRE PLC-ADR (SHPG): Free Stock Analysis
VIROPHARMA (VPHM): Free Stock Analysis Report
To read this article on Zacks.com click here.