ViroPharma Incorporated Reports Third Quarter and Nine-Month 2007 Financial Results
Net sales of Vancocin(R) were $50.9 million for the third quarter of 2007and $156.1 million for the first nine months of 2007 as compared to $55.1million and $128.2 million in the respective 2006 periods.
Operating income in the third quarter and nine-months ended September 30,2007 was $27.9 million and $96.7 million, respectively, compared to $34.5million and $73.7 million in the third quarter and nine months of 2006,respectively. Operating income in the third quarter decreased primarily dueto lower sales and increased development costs incurred during the quarter.
"Increased momentum in our Phase 3 Camvia program is of utmost importanceto ViroPharma; the third quarter of 2007 reflected this momentum, as shown bythe dramatic increase in clinical expenses this period over that of the samequarter in 2006," commented Michel de Rosen, ViroPharma's president and chiefexecutive officer. "For example, we began enrolling into our pivotal Phase 3trial in liver transplant recipients. There is tremendous global enthusiasmby investigators in this study, as well as in our ongoing pivotal study instem cell transplant recipients. We also made good progress in elucidatingthe regulatory and clinical plan for Camvia in Europe. The third quarter wasnot only a great quarter of clinical execution, but also strong financially.The continued, robust performance of Vancocin helped grow our working capitalto $573 million, of which $552 million is in cash, cash equivalents and short-term investments."
Continued de Rosen, "Another company engaged in developing noveltherapeutics targeting CDAD, Genzyme Corporation, presented data during thequarter which, among other things, compared clinical success with Vancocin tothat of metronidazole and their investigational compound in patients withCDAD. These statistically significant results (p=0.04) showed that in cases ofsevere disease, patients achieved a higher clinical success rate than patientson metronidazole or the investigational compound. These data confirm theefficacy and safety of Vancocin in patients with severe CDAD and we expectthat these data and the IDSA/SHEA guidelines for treatment of CDAD will bestrongly considered in treatment recommendations."
Net income in the third quarter and nine-months ended September 30, 2007was $21.3 million and $75.0 million, respectively, compared to a net income of$23.3 million and $48.7 million for the same periods in 2006. Net income pershare for the quarter ended September 30, 2007 was $0.30 per share, basic and$0.26 per share, diluted, compared to a net income of $0.34 per share, basic,and $0.33 per share, diluted, for the same period in 2006. Net income pershare for the nine-months ended September 30, 2007 was $1.07 per share, basic,and $0.96 per share, diluted, compared to a net income of $0.71 per share,basic, and $0.69 per share, diluted, for the same period in 2006.
The primary drivers of the change in net income for the third quarter werethe effects of decreased operating income discussed above, offset by increasedinterest income and a lower effective tax rate. Net income for the nine monthperiod increased primarily due to higher net sales.
During the three and nine months ended September 30, 2007, net sales ofVancocin decreased 7.6 percent and increased 21.8 percent, respectively,compared to the same periods in 2006. The decrease in net sales of 7.6percent resulted from fewer units sold to wholesalers in the third quarter of2007 than during the third quarter of 2006 as a result of wholesaler buyerdecisions to increase inventory levels in the third quarter of 2006. The ninemonth increase of 21.8 percent resulted from an increase in units sold to
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