ViroPharma Incorporated (NYSE: VPHM) is a pharmaceutical company that develops and sells two major drugs, Cinryze and Vancocin. In Octover of 2008, ViroPharma acquired Lev Pharmaceuticals, adding an injectable treatment for angiodema to its portfolio, Cinryze. Vancocin is an oral treatment for inflammation of the bowels (colitis). ViroPharma's operators are largely focused on the development and commercialization of these two products.
In 2010, revenue growth was driven by Cinryze, a drug used to treat hereditary angiodema, which earned revenue of $177 million for the year, up 82%. Vancocin, a drug used to treat inflammation of the bowels (colitis), brought in sales of $260 million, up 22% on the year.
ViroPharma's pipeline consists of developing new formulations and indications for Cinryze and Vancocin as well as working to market the drugs in other geographies.
ViroPharma does not currently face significant competition for its two major drugs, Cinryze and Vancocin. However, an influx of generic competition could both lower drug prices and reduce ViroPharma's market share, decreasing the company's overall revenues. The major patent for Cinryze expires in 2015. While ViroPharma does not have any patent protection for Vancocin, much of this is due to the historical lack of a generic pathway, a gap that has been closed with the development of a regulatory pathway for follow-on biologics. If companies develop generic versions of ViroPharma's drugs, revenue will decrease.
ViroPharma is developing several different formulations and markets for its major drugs, Cinryze and Vancocin. These approvals, if attained, will extend the reach and the overall life of ViroPharma's products. However, the ability of ViroPharma to expand beyond these two drugs and diversify its product portfolio will impact its ability to maintain a sustainable business in the long-term.