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ViroPharma Incorporated Reports Third Quarter 2008 Financial Results
Date:10/29/2008

Net income in the third quarter and nine-months ended September 30, 2008 was $27.1 million and $68.6 million, respectively, compared to a net income of $21.3 million and $75.0 million for the same periods in 2007. Net income per share for the quarter ended September 30, 2008 was $0.39 per share, basic and $0.33 per share, diluted, compared to a net income of $0.30 per share, basic, and $0.26 per share, diluted, for the same period in 2007. Net income per share for the nine-months ended September 30, 2008 was $0.98 per share, basic, and $0.84 per share, diluted, compared to a net income of $1.07 per share, basic, and $0.96 per share, diluted, for the same period in 2007.

The primary drivers of the increase in net income for the third quarter were the increase in net sales and a lower effective tax rate. The decrease in net income for the nine months ended September 30, 2008 were the effects of lower operating income discussed above, partially offset by a lower effective tax rate.

Operating Highlights

During the three and nine months ended September 30, 2008, net sales of Vancocin increased 29.4 percent and 16.8 percent, respectively, compared to the same periods in 2007 primarily due to the impact of a price increase during 2008 and the increase in the number of units sold.

The cost of sales for Vancocin for the three and nine months ended September 30, 2008 increased $0.4 million and decreased $0.1 million, respectively, as compared to the same periods in 2007. For the three and nine month periods ended September 30, 2008 the cost of sales was $2.5 million and $6.8 million, respectively, compared to $2.0 million and $6.9, respectively, for the same period in 2007.

Investment in our product pipeline and the Company continued to grow as research and development (R&D) and selling, general and administrative (SG&A) expenses in the third quarter and nine-months ended September 30, 2008 were $29.1 million and $88.2 million, respec
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SOURCE ViroPharma Incorporated
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