ViroPharma (VPHM) Could Draw 50% Premium in Takeover
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ViroPharma (Nasdaq: VPHM) is up in early trading Friday following analysis of what the company might get in a buyout.
Bloomberg thinks that ViroPharma might be able to garner a 50 percent premium from its recent trading range. One JMP Group analyst thinks a price of $60 might be considered, versus a close near $40 on Thursday.
Shares recently surged over 34 percent following news that the company tapped Goldman Sachs to advise on strategic alternatives for the company. Even amid the pop, shares of ViroPharma still trade at 3.9 times projected FY15 sales, lower than 87 percent of similarly-sized peers.
Suitors may include giants Sanofi Aventis (NYSE: SNY) and Shire plc (Nasdaq: SHPG). ViroPharma could draw positive bids due to its potential gains in Europe and the U.S. for its primary drug, Cinryze. There is also pipeline drug maribavir, which is being developed as an antiviral treatment.
While $60 would be optimal, another analyst from Deutsche Bank thinks ViroPharma could get just $52, or $46 should a buyer not have cost-cutting opportunities for HAE drugs.
Buyers will be keeping an eye on Cinryze potential given that it will lose some market exclusivity by 2015. Also, BioCryst Pharma (Nasdaq: BCRX) is developing a competitive HAE drug candidate, which could hamper sales.
ViroPharma is up again in early trading Friday.
Bloomberg thinks that ViroPharma might be able to garner a 50 percent premium from its recent trading range. One JMP Group analyst thinks a price of $60 might be considered, versus a close near $40 on Thursday.
Shares recently surged over 34 percent following news that the company tapped Goldman Sachs to advise on strategic alternatives for the company. Even amid the pop, shares of ViroPharma still trade at 3.9 times projected FY15 sales, lower than 87 percent of similarly-sized peers.
Suitors may include giants Sanofi Aventis (NYSE: SNY) and Shire plc (Nasdaq: SHPG). ViroPharma could draw positive bids due to its potential gains in Europe and the U.S. for its primary drug, Cinryze. There is also pipeline drug maribavir, which is being developed as an antiviral treatment.
While $60 would be optimal, another analyst from Deutsche Bank thinks ViroPharma could get just $52, or $46 should a buyer not have cost-cutting opportunities for HAE drugs.
Buyers will be keeping an eye on Cinryze potential given that it will lose some market exclusivity by 2015. Also, BioCryst Pharma (Nasdaq: BCRX) is developing a competitive HAE drug candidate, which could hamper sales.
ViroPharma is up again in early trading Friday.
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