JP Morgan Update: ViroPharma back on the Upside

At the JP Morgan Healthcare Conference yesterday, Michel de Rosen, CEO of Viropharma (NASDAQ:VPHM) presented a very attractive update on the company:

1. ViroPharma is advancing his late stage asset, Canvia for the treatment of Cytomegalovirus (CMV) infections, toward a 2009 NDA. CMV infections are the most frequent illness in transplant patients. Other groups at risk include HIV/AIDS patients, certain oncology patients and neonates. Sales expectations for Canvia are in excess of $ 500 million.

2. ViroPharma has a strong Balance Sheet, with $552 million in cash, which supports an agressive Business Development strategy.

3. Vancomicin, which ViroPharma acquired from Eli Lilly in 2004 when sales were $54 million, continue to grow. The company gave guidance of  $ 202-208 million Vancocin net sales for 2007 and $210-235 million for 2008. The new guidelines from the Infectious Disease Society of America (IDSA) support the leadership position of Vancocin in the treatemnt of Clostridium dificile infections (CDI).

Viropharma was up 7.9% yesterday to $9.28 a share. We believe that the company has been unfairly punished by investors in the past year. With a Market Cap of under $650 million, ViroPharma has definitely a very strong upside potential.