3SOF

Hi. What do you think of today's action.  How could such a good stock with great fundamentals sell for sooooo cheap (espec before earnings).  I am trying to be patient.

I thought this might happen.  It went down around earnings last time.  It could even go a few dollars lower.  Thought about cashing in, but I think I will hold till the end of the year.  If it needs it, I bet there will be very strong support at the 50 day moving average.

Yes, I remember it did this in August and I had a feeling it would do it again. I hate seeing it go down but I don't want to miss going up again...

Earnings out today. I would expect them to beat the earning estimate with 25% to 30%.

Not bad having in mind that the earnings estimate has been revised up from 5 cents to 21 cents the last 90 days!

VPHM is dirt cheap based on the profit from Vancocin alone but VPHM is so much more.

We should soon here news about Maribavir, HCV796 and Pleconaril.

The release of earnings are always exciting especially with stocks like Viropharma. The stock price can go both ways. I am (hardly surprising) holding over earnings. Long term this stock can only go one way......

Mike

just awesome 


ViroPharma Incorporated Reports Third Quarter and Nine-Month 2005 Financial Results
07:36 VPHM ViroPharma beats by $0.10; guides Y05 revs above consensus. (20.99 )

Reports Q3 (Sep) earnings of $0.31 per share, $0.10 better than the Reuters Estimates consensus of $0.21; revenues rose to $35.7 mln vs the $29.5 mln consensus. Co issues upside guidance for FY05, sees FY05 revs of $120-123 mln vs. $119.81 mln consensus.

&

Monday November 7, 7:30 am ET
- Company Increases Guidance for 2005 Based on Continued Revenue Growth -

EXTON, Pa., Nov. 7 /PRNewswire-FirstCall/ -- ViroPharma Incorporated (Nasdaq: VPHM - News) reported today its financial results for the third quarter and nine-months ended September 30, 2005.

Net sales of Vancocin® were a record $35.7 million for the third quarter of 2005 and $85.5 million for the first nine months of 2005. Operating income in the third quarter and nine-months ended September 30, 2005 was $23.9 million and $60.0 million, respectively, compared to operating losses in the third quarter and nine months of 2004 of $3.3 million and $21.8 million, respectively. The increases in operating results from 2004 to 2005 were driven primarily by sales of Vancocin and the related cost of sales.

Net income in the third quarter and nine-months ended September 30, 2005 was $18.7 million and $41.0 million, respectively, compared to a net loss of $3.3 million and $25.3 million for the same periods in 2004. Net income per share for the quarter ended September 30, 2005 was $0.33 per share, basic, and $0.31 per share, diluted, compared to a net loss of $0.13 per share, basic and diluted, for the same period in 2004. Net income per share for the nine- months ended September 30, 2005 was $1.05 per share, basic, and $0.77 per share, diluted, compared to a net loss of $0.95 per share, basic and diluted, for the same period in 2004. The primary drivers of the change from net loss in 2004 to net income in 2005 were the effects of improved operating income, partially offset by debt-related costs and income tax expense in 2005.

"The third quarter of 2005 marked the third sequential quarter of record revenue and strong financial results for ViroPharma, and also marked a time of great momentum throughout our business," commented Michel de Rosen, ViroPharma's chief executive officer. "Vancocin continued to perform well, with prescriptions growing 36 percent over the third quarter of 2004. We hired, and have since launched, our regional medical scientist team, who are now working with key opinion leaders throughout the U.S. to ensure appropriate usage of Vancocin and rapid identification of patients at high risk of serious Clostridium difficile-associated disease. We further reduced our debt from the end of the second quarter, ending the quarter with only $86.7 million remaining. Finally, enrollment in our Phase 1b study with HCV-796 and Phase 2 trial with maribavir continued, and we expect to have the clinical data available from these studies in the fourth quarter of 2005 and the first quarter of 2006, respectively."

Operating Highlights

Net sales of Vancocin were $35.7 million and $85.5 million for the three- and nine-months ended September 30, 2005, respectively, driven by price increases and prescription demand. Prescriptions increased 36 percent and 33 percent for the three- and nine-months ended September 30, 2005, respectively, as compared to the same periods in 2004. Additionally, while prescriptions in the third quarter remained relatively flat from the second quarter of 2005, decreasing only three percent, net sales of Vancocin increased 24 percent over the second quarter of 2005. This increase was due to three factors: the impact of the price increases effected during the second and third quarters of 2005; the fact that in the third quarter, the higher priced presentation of Vancocin represented a greater percentage of total units sold than in the preceding quarter; and an increase within estimated normal levels of wholesaler inventory at the end of the period. There were no comparable net sales in the 2004 periods, as the Company acquired Vancocin from Eli Lilly and Company in November 2004.

The nine-month 2005 period also included $6.0 million in revenue from the sale of inventory to Schering-Plough pursuant to the license agreement between the companies.

The gross margin rate (net product sales less cost of sales as a percent of net product sales) for Vancocin increased in the third quarter of 2005 to 86 percent from 85 percent in the second quarter of 2005, primarily due to the September 2005 price increase. The gross margin rate was 85 percent for the nine-months ended September 30, 2005.

The total costs and expenses associated with operating income (loss) were $11.9 million and $3.7 million, for the third quarter of 2005 and 2004, respectively, and $32.0 million and $25.7 million, for the nine months of 2005 and 2004, respectively. These changes reflect the net effect of increases related to the Vancocin cost of sales and intangible amortization and decreases related to research and development and marketing, general and administrative expenses. These changes primarily resulted from the Company's purchase of Vancocin and the results of the Company's January 2004 restructuring, which included $9.2 million of costs recorded in the nine- months ended September 30, 2004.

The Company recorded $3.3 million of income tax expense in the third quarter of 2005 and $7.1 million for the first nine months of 2005, which is based on a combined federal and state estimated annual effective tax rate of 15 percent. This resulted from the Company's preliminary study on the availability of net operating loss carryforwards, which indicates that, assuming the Company continues to be profitable, it should be able to utilize all carryforwards over future years, but with annual limitations. As such, the Company believes that taxable income will exceed available carryforwards for 2005.

Regarding additional payments due to Lilly in connection with the Vancocin acquisition, net sales as of September 30, 2005 exceeded the maximum milestone threshold of $65.0 million. As a result, the Company recorded additional purchase price of $7.6 million to intangible assets in September 2005 and established a corresponding liability to be paid in the fourth quarter of 2005. No purchase price consideration will be due to Lilly relating to net sales occurring in the fourth quarter of 2005.

Debt Highlights

During 2005, the Company recorded a charge of $4.0 million for the change in fair value of derivative liability that related to the make-whole provision on the senior convertible notes, which are no longer outstanding.

The Company recorded a $1.2 million net gain related to the repurchase of $41.2 million of subordinated convertible notes for $39.8 million in the second quarter of 2005. The net gain is comprised of the gross gain of $1.4 million less the write-off of $0.2 million of deferred finance costs.

The increases in both periods for interest expense were due to the interest, amortization of financing costs, and debt discount from the senior convertible notes, issued in January and April 2005. Interest expense also includes the $0.6 million and $0.9 million related to the beneficial conversion feature for the settlement of the make-whole provision of the senior convertible notes in shares of common stock during June and July 2005, respectively.

During 2005 the Company reduced its debt principal by $116.2 million through $41.2 million of purchases of convertible subordinated notes and by the conversion of $75.0 million of senior convertible notes. On July 12, 2005, the Company effected an auto-conversion on the final $15.4 million of the senior convertible notes. The Company had $86.7 million in principal amount of notes outstanding as of September 30, 2005.

Cash Highlights

As of September 30, 2005, ViroPharma's assets included approximately $65.2 million in cash, cash equivalents and short-term investments, which represents a $30.0 million increase from December 31, 2004. This increase is primarily the result of strong operating results less the cash used of $46.6 million for repurchases of convertible subordinated notes and make-whole payments on the senior convertible notes. In addition, there was an increase in cash of $12.5 million related to the exercise of the purchase option by the holders of the senior convertible notes in April 2005.

Looking ahead in 2005

ViroPharma is updating its previously announced guidance for the year 2005 as a convenience to investors. The following guidance provided by ViroPharma are projections, based upon numerous assumptions, all of which are subject to certain risks and uncertainties. For a complete discussion and disclosure of the risks and uncertainties associated with these forward-looking statements, please see the Disclosure Notice below. The Company's guidance does not include non-operating expenses or income.

    For the year 2005, ViroPharma expects the following:
     -- Net product sales:  $120 to $123 million, representing growth of 122
        percent to 128 percent over unaudited net product sales of Vancocin in
        2004;
     -- Cost of sales:  $18 to $18.5 million;
     -- Research and Development:  $11.5 to $13.5 million;
     -- Marketing, General and Administrative:  $10 to $12.5 million;
     -- Net cash flows provided by operations:  At least $60 million.

    Conference Call and Webcast

ViroPharma is hosting a live teleconference and webcast with senior management to discuss the financial announcement, guidance, and other business results on November 7, 2005 at 10:00 a.m. Eastern Time. To participate in the conference call, please dial (800) 391-2548 (domestic) and (302) 709-8328 (international). After placing the call, please tell the operator you wish to join the ViroPharma investor conference call.

Alternatively, the live webcast of the conference call can be accessed via ViroPharma's website at http://www.viropharma.com. Windows Media or Real Player will be needed to access the webcast. An audio archive will be available at the same address until November 21, 2005.

See the pre-market pop on this stock?

They had blow-out earnings this morning.  This stock is an amazing consistent mover.

THIS ONE IS HEADING TO $30+. I AM IN.

Yes, I have been holding 4500 shares. It was painful but it will be well worth it.  I am hoping that it goes to $27 or so within this week...

 VPHM: JMP Sec Keeps @ Mkt Outperform; Ups Tgt to $28 vs $25; Analyst Notes
Monday , November 07, 2005 15:25 ET

Issuer: Viropharma, Incorporated (NasdaqNM: VPHM)

Analyst Firm:  JMP Securities

Ratings Action: REITERATION

Current Rating: Mkt Outperform

Target Price Action: INCREASE
Target Price: $28.00 (+12.00% from $25.00)

Analyst Comments: According to the firm, VPHM has reported 3Q05 financial results with 3Q Vancocin sales of $35.7 million beating their estimate $30.0 million, and 3Q EPS of 31c beating firm's estimate of 23c. ViroPharma raised its guidance for 2005 Vancocin sales from $100-105 million to $120-123 million. The company also narrowed its guidance (shaving the top end) for 2005 R&D and MG&A expenses. Additionally, the firm is raising their Vancocin sales estimates from $113.4 million to $122.6 million for 2005, from $153.8 million to $170.6 million for 2006, from $184.6 million to $201.3 million for 2007, and from $221.5 million to $231.5 million for 2008. These changes result in new EPS estimates: from 89c to $1.04 for 2005, from $1.00 to $1.11 for 2006, from $1.24 to $1.34 for 2007, and from $1.51 to $1.53 for 2008. They believe that continued Vancocin sales growth along with progress from the company's pipeline should drive continued appreciation for the stock.

One word says it all....AWESOME......

Reuters.com - No Spin. No Agenda. Just the Facts. As they happen.
 
TABLE-ViroPharma posts Q3 profit
Mon Nov 7, 2005 07:45 AM ET
Nov 7 (Reuters) -
VIROPHARMA INC. (VPHM.O: Quote, Profile, Research)

Latest Yr ago

qtr EPS (diluted, $/shr) 0.31 -0.13 Net ($ million) 18.7 -3.3 Revenue ($ thousands) 35,798 398

*Source: Reuters Estimates

#Excludes extraordinary, special or one-time items

--The drugmaker said shares used in computing net income per share amounts were 59.8 million for the latest third quarter compared with 26.6 million for the year-ago quarter.

--For the latest third quarter, four analysts on average had expected the company to earn 21 cents a share, excluding any exceptional item, on revenue of $29.5 million, according to Reuters Estimates. (Reporting by Renu Pariyadath in Bangalore)


© Reuters 2005. All Rights Reserved.

AP
ViroPharma Reports Third-Quarter Profit
Monday November 7, 11:50 am ET 
ViroPharma Reports Third-Quarter Profit on Strong Sales of Antibiotic Vancocin


EXTON, Pa. (AP) -- ViroPharma Inc. reported a profit in the latest quarter on strong sales of its antibiotic Vancocin.
Shares surged on the Nasdaq Stock Market, rising $2.39, or 11 percent, to $23.38 in late morning trading. Earlier Monday, the stock traded as high as $23.90, its highest point since 2001.
 
The Exton-based pharmaceutical company on Monday said it earned $18.7 million, or 31 cents a share, on revenue of $35.8 million in the third quarter.

In the same period a year earlier, it lost $3.3 million, or 13 cents a share, on revenue of $398,000.

ViroPharma reported third-quarter operating income of $23.9 million, compared with an operating loss of $3.3 million a year earlier.

Analysts were expecting earnings of 21 cents a share on revenue of $29.5 million, according to Thomson Financial.

ViroPharma acquired Vancocin from Eli Lilly & Co. last November.

The company said prescriptions of Vancocin, which treats intestinal bacteria, rose 36 percent in the quarter over the year-earlier period. Although prescriptions declined 3 percent from the second quarter, net sales of Vancocin rose 24 percent sequentially, primarily because of the higher price of the product.

ViroPharma said in August that it would boost the price of Vancocin by more than 20 percent, the third significant increase since the company acquired the drug.

The company said total costs and expenses rose to $11.9 million in the third quarter from $3.7 million a year earlier, on higher cost of sales, research and development and marketing expenses for Vancocin.

ViroPharma again raised its 2005 outlook for Vancocin net product sales to a range of $120 million to $123 million, representing growth of 122 percent to 128 percent over unaudited net sales of Vancocin in 2004.

In August, the company increased its view for Vancocin net sales to a range of $100 million to $105 million from its earlier outlook of $74 million to $79 million.

Analysts surveyed by First Call, on average, project 2005 sales of $119.8 million for ViroPharma.

Anyone have any idea on how VPHM will do short term?

News....

• New Star Analyst Rankings for VIROPHARMA INC
StarMine (Tue 10:34am) 

• VIROPHARMA INC Files SEC form 10-Q, Quarterly Report
EDGAR Online (Tue 3:38pm) 


Link......   http://finance.yahoo.com/q?s=vphm

Great article rocket8 .
Thanks for making the post,great read. Applaud your work!