Back to top

Analyst Blog

Shares of ViroPharma Inc. recently soared 28.42% on potential buyout rumors.

According to Bloomberg News, Sanofi (SNY - Analyst Report) and Shire (SHPG - Analyst Report) have shown interest in acquiring ViroPharma.

We remind investors that buyout rumors of ViroPharma have been doing rounds since Jun 2013 when it was rumored that several pharmaceutical companies have shown an interest in acquiring ViroPharma given the company’s orphan disease drug portfolio.

The company’s key drugs include Cinryze for hereditary angioedema (HAE), Plenadren for the treatment of adrenal insufficiency (AI), Buccolam in Europe for the treatment of pediatric seizures, and Vancocin for the treatment of C. difficile- associated diarrhea (CDAD).

We note that ViroPharma’s growth story currently revolves around Cinryze, which is approved in the U.S. for routine prophylaxis against angioedema attacks in adolescent and adult patients with HAE.

Cinryze accounted for 76% of total sales in 2012. In the EU, Cinryze received approval for routine prevention, pre-procedure prevention and acute treatment of angioedema attacks in adults and adolescents in 2011.

Cinrzye has been granted marketing exclusivity by the U.S. Food and Drug Administration (FDA) until 2015 under the Orphan Drug Act.

Moreover, in Aug 2012, the FDA approved a Prior Approval Supplement (PAS) to the Cinryze Biologics License Application (BLA) for industrial scale manufacturing.

ViroPharma has begun commercializing Buccolam in Europe paving the way for an additional revenue opportunity. Additionally, the acquisition of Plenadren in 2011 expanded the company’s orphan disease commercial product portfolio.

Meanwhile, an interesting candidate in ViroPharma’s pipeline is maribavir, being developed for the treatment of cytomegalovirus (CMV) infections in transplant recipients. ViroPharma received orphan drug designation in the EU for maribavir in Jun 2013 for the treatment of CMV in patients suffering from impaired cell mediated immunity.

Maribavir was granted the same designation in the U.S. in May 2011 for the treatment of clinically significant CMV and disease in at-risk patients.

We expect investor focus to remain on takeover updates. Shares have gone up 67.2% on a year-to-date basis and we expect further increase if the buyout rumors gather momentum.

ViroPharma currently carries a Zacks Rank #3 (Hold). Right now, Jazz Pharmaceuticals (JAZZ - Analyst Report) looks attractive with a Zacks Rank #2 (Buy).

Please login to Zacks.com or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research

Close

Are you a new Zacks Member or a visitor to Zacks.com?

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Zacks.com. Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CENTURY ALU… CENX 22.53 +4.50%
ERBA DIAGNO… ERB 2.91 +4.30%
PLANAR SYST… PLNR 4.31 +3.86%
MALLINCKROD… MNK 72.17 +3.83%
GTT COMMUNI… GTT 12.06 +3.52%