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WIKI ANALYSIS
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.
Business Growth
FY 2010 (ended December 31, 2010[1]
- Net revenue increased 41% to $439 million.
- Net income increased 88% to $126 million.
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.
Pipeline
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.[2]
- Cinryze: ViroPharma is partnering with Sanquin to develop a non-injectable version of Cinryze. This version has been moved through phase II trials, and is expected to initiate phase III trials by the end of 2011. In addition, ViroPharma received European approval for Cinryze in June of 2011[3] and is exploring other geographies world-wide.
- Vancocin: ViroPharma is developing a less toxic version of Vancocin, and is currently initiating phase II trials for the treatment.
Trends and Forces
Generic Competition for ViroPharma Would Decrease Revenues
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.[4] If companies develop generic versions of ViroPharma's drugs, revenue will decrease.
ViroPharma's Pipeline will Impact its Future Sustainability
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.
Competition[5]
- Cinryze: Cinryze does not have patent protection, but enjoys exclusivity provided by the FDA in the Orphan drug act. Once this exclusivity expires near the end of 2015, Cinryze will face generic competition.
- Vancocin: The patents for Vancocin expired in 1996. However, Vancocin is a complex biologic drug, and any generic competition would require significant regulatory hurdles. However, on biologics could cut into ViroPharma's sales of Vancocin.
References
- ↑ ViroPharma Incorporated Reports Q4 2010 Financial Results
- ↑ VPHM 2011 10K
- ↑ ViroPharma’s HAE Drug Gets EU Nod
- ↑ Principles of Follow On Biologics
- ↑ ViroPharma Competition
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