EXTON, Pa. (AP) — ViroPharma Inc. reported a second-quarter loss as generic competition for the antibiotic Vancocin hurt the drugmaker’s revenue, which tumbled 26 percent.
The Exton, Pa., company said Thursday that Vancocin revenue sank to $15.9 million from $65.2 million because of the introduction of generic vancomycin capsules. Branded drug sales typically drop after a competitor introduces cheaper generic products.
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ViroPharma also said its cost of sales climbed 16 percent in the quarter due to a royalty payment and the fact that sales of another drug, Cinryze, grew while Vancocin fell. Cinryze sales climbed about 23 percent to $76.6 million, but that drug generates a lower profit margin.
Cinryze is used to prevent and treat attacks of hereditary angioedema, a rare genetic disorder that can cause dangerous swelling of the throat or larynx.
Overall, the drugmaker lost $4.2 million, or six cents per share, in the three months that ended June 30. That compares to earnings of $22.8 million, or 28 cents per share, in last year’s quarter. Adjusted earnings were 9 cents per share.
Revenue dropped to $94.6 million from $128.8 million.
Analysts surveyed by FactSet expected, on average, earnings of 11 cents per share on $104 million in revenue.
ViroPharma also said Wednesday that it narrowed its 2012 revenue forecast to a range of $450 million to $475 million from $450 million to $500 million. Analysts had expected $447.6 million.
The company also raised its expected range for Cinryze sales to $320 million to $335 million from $310 million to $330 million.
ViroPharma shares climbed 3.5 percent, or 79 cents, to $23.17 in Thursday morning trading.
Analyst Steve Brozak of WBB Securities said ViroPharma has straightened out its manufacturing process for Cinryze, and the company has given investors greater certainty for how it will replace Vancocin sales.
“They’ve painted a visible path to how their cash flow modeling is going to take place,” he said.
