ViroPharma's 3Q earnings jump on Vancocin sales

EXTON, Pa. - ViroPharma Inc. said Wednesday that its earnings jumped 27 percent in the third quarter as sales of Vancocin, a treatment for gastrointestinal infection, surged and the biopharmaceutical company benefited from a lower tax rate.

ViroPharma shares gained 92 cents, or 8.3 percent, to $11.99 in midday trading. The stock has traded between $7.11 and $15.16 during the past 52 weeks.

Earnings for the quarter ended Sept. 30 rose to $27.1 million, or 33 cents per share, from $21.3 million, or 26 cents per share, a year ago.

Sales of Vancocin jumped 29 percent to $65.9 million, from $50.9 million in the third quarter of 2007. ViroPharma noted that a price increase helped boost the results.

The results beat the expectations of analysts surveyed by Thomson Reuters, who forecast third-quarter earnings of 23 cents on sales of $59.2 million, on average.

ViroPharma said research and development costs jumped 43 percent to $15.1 million, mostly driven by investments in the company's maribavir and NTCD drug candidates. Maribavir is used to treat cytomegalovirus, which can cause liver problems and fevers. NTCD is used to prevent the same gastrointestinal infection treated by Vancocin.

The company's selling, general and administrative expenses surged 56 percent due to increased investments in European operations, sales and marketing.

ViroPharma's effective income tax rate fell to 21.5 percent from 36.4 for the quarter, mostly due to a tax credit for rare diseases for maribavir.

For 2008, ViroPharma predicts that Vancocin sales will range from $235 million to $245 million. Analysts forecast sales of $233.3 million.

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