Zacks Says Other Are Better, concerned about the company’s dependence primarily on Cinryze for growth
We expect the company to meet its target in 2013 driven by the continued success of Cinryze. However, we note that Vancocin has been the major growth driver for the company in the last few years. Although the prospects for Cinryze look bright for ViroPharma, we remain concerned about the company’s dependence primarily on Cinryze for growth. we remain concerned about the decline in Vancocin sales due to increasing generic competition.
Hence, we prefer to be on the sidelines as of now and have a Neutral recommendation on ViroPharma which carries a Zacks #3 Rank (Hold). Pharma stocks which currently look attractive are Valeant Pharmaceuticals International Inc. (VRX) and Ironwood Pharmaceuticals, Inc. (IRWD) which carry a Zacks #1 Rank (Strong Buy).