Access Update- #45
It’s rather obvious that in Access we’re swinging for the fences. So it’s nice to report when one of our stocks knocks one over the wall.
That’s just what ViroPharma (Nasdaq: VPHM) did this morning when it reported 3rd quarter results.
The company earned $0.33 per share on revenue of $65.9 million. Wall Street expected earnings of $0.23 on revenue of $58.7 million. Importantly, management raised revenue guidance for the full year to $235 million – $245 million. The current consensus is $232.5 million.
It’s important to note that the company’s revenue guidance does not include any sales of newly approved Cinryze. The drug is expected to launch before the end of the year and should add some additional revenue.
The strong results were due to higher unit sales of Vancocin with some help from a price increase. Vancocin sales jumped 29.4% in the quarter and 16.8% in the first nine months of the year versus the same periods a year ago. A strong effort by ViroPharma’s sales team to educate doctors on the need for Vancocin to treat c. difficile disease helped to boost the numbers.
The company finished the quarter with $668 million in cash and short-term investments. However, ViroPharma paid Lev Pharmaceuticals shareholders $385 million shortly after the end of the quarter to close the acquisition. That leaves ViroPharma with $283 million in cash, more than enough to cover its debt.
Additionally, this was the 15th consecutive quarter in which ViroPharma was profitable and cash flow positive.
The stock is up strongly this morning as a result of the earnings.
We continue to have confidence in management’s ability to execute its plan and expect Cinryze to be a big winner for the company in 2009. Additionally, if the FDA eventually concludes that generic vancocin must undergo clinical trials, as we believe it should, shares of ViroPharma should spike.
SIGA Conference Call
Just in case you missed yesterday’s update, the conference call with SIGA Technologies’ (Nasdaq: SIGA) CEO Dr. Eric Rose, will now take place on Wednesday, November 5th at 2:00 p.m. ET.
The dial in information is the same as on the report. Only the date has changed.
Dial in 5-10 minutes before the start of the call.
Dial in #: 1-888-373-5705 or 1-719-457-384.
Passcode: 455882
Marc Lichtenfeld
Director of Research
Access Research Group
Current Portfoli
Name: SIGA Technologies
Symbol: SIGA
Current Price:$3.07
Comments: Buy up to $4.00
Name: Synta Pharmaceuticals
Symbol: SNTA
Current Price: $6.58
Comments: Buy up to $13.00
Name: ViroPharma
Symbol: VPHM
Current Price: $12.51
Comments: Buy up to $12.50
Name: Cytori Therapeutics
Symbol: CYTX
Current Price: $3.64
Comments: Buy up to $8
Name: Electro-Optical Sciences
Symbol: MELA
Current Price: $2.55
Comments: Buy up to $5.75