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ViroPharma Incorporated Reports Fourth Quarter and Full Year 2010 Financial Results
Date:2/24/2011

building our European organization, increased marketing expenses, legal costs and compensation expense partly offset by decreased medical education expenses.

Our income tax expense was $75.3 million and $41.0 million for the year ended December 31, 2010 and 2009, respectively.  The effective tax rate in 2010 was 37.5 percent compared to 137.0 percent in 2009.  The effective tax rate in 2010 exceeded the federal statutory tax rate due to state income taxes and certain share-based compensation that is not tax deductible.  The effective tax rate in 2009 exceeded the statutory tax rate because of a goodwill impairment charge which was not deductible for tax purposes and state income taxes, partially offset by an orphan drug credit.

Working Capital HighlightsAt December 31, 2010, our working capital was $561.0 million compared to $406.4 million at the end of 2009 as we generated $193.5 million in cash flow from operations during 2010.

Looking ahead in 2011ViroPharma is reiterating its guidance for the year 2011 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 discussion of the risks and uncertainties associated with these forward looking statements, please see the Disclosure Notice below.

For the year 2011, ViroPharma expects the following:

  • Net Cinryze sales are expected to be $235 to $260 million.

  • Research and development (R&D) and selling, general and administrative (SG&A) expenses are expected to be $170 to $190 million.  

  • Conference Call and WebcastViroPharma is hosting a live teleconference and webcast with senior management to discuss the financial announcement, guidance, and other business results on February 24, 2011 at 9:00 a.m. Eastern. To participate in the conference ca
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