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ViroPharma Incorporated Reports Third Quarter 2009 Financial Results
Date:10/28/2009

as the additional non-cash interest expense recognized under the new accounting standard was offset by lower income tax expense. For the nine months ended September 30, 2008, the previously reported net income has been reduced by $2.3 million to $66.3 million. There was no impact on diluted earnings per share for either period as a result of adopting this new accounting method.

Operating Highlights

Cinryze net sales during the three and nine months ended September 30, 2009 were $29.1 million and $61.3 million, respectively. Vancocin net sales during the three and nine months ended September 30, 2009, decreased 22.0 percent to $51.4 million and 11.5 percent to $161.3 million, respectively due to lower sales volume, partially offset by the price increase in January 2009.

Cost of sales increased over the three and nine month periods in the prior year by $7.8 million and $21.5 million, respectively, due to the launch of Cinryze. In the comparative periods in 2008, the Company only had cost of sales related to Vancocin. As part of our October 2008 purchase of Lev, we acquired Cinryze inventory which was recorded at fair value in purchase accounting. This fair value of inventory increased cost of sales for Cinryze until all purchased inventory was sold to SP/SD's, with the final $0.7 million affecting cost of sales in the third quarter of 2009.

Investment in our commercialization efforts, 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 2009 were $31.2 million as compared to $29.1 million in the third quarter of 2008. R&D expenses decreased $3.8 million related primarily to discontinuing the maribavir prophylactic program, offset by costs associated with the initiation of our Phase 1 clinical trial for NTCD and costs related to the Cinryze Phase 4 safety requirement study for th
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SOURCE ViroPharma Incorporated
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