EXTON, Pa., Aug. 9, 2012 /PRNewswire/ --ViroPharma Incorporated (VPHM) reported today its financial results for the second quarter ended June 30, 2012.
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Net sales were $94.6 million for the second quarter ended June 30, 2012, as compared to $128.8 million in the comparative period of 2011. The decrease was the result of the impact of generic oral vancomycin entries into the market. Regarding Cinryze, the channel remained below normal levels from the end of the first quarter and as a result, the revenue reported is more reflective of demand. The company anticipates that the levels of channel inventory will increase in the third and fourth quarters as additional Cinryze begins to enter the market. Net sales were $230.4 million for the six months ended June 30, 2012, as compared to $255.8 million in the comparative period of 2011.
"The second quarter of 2012 represents the new base from which all of our future growth as a company will be measured," stated Vincent Milano, ViroPharma's chief executive officer. "The positive momentum we experienced during the period bodes well for the trajectory of our growth. With the recent expansion in manufacturing capacity, continued strong patient adds and consistent patient dosing rates in the United States, we believe that peak year sales for Cinryze as it is currently marketed, will exceed $700 million. In addition, we continued to advance our pipeline programs, and continue our territorial expansion throughout Europe. We believe remarkably exciting times are shaping up for ViroPharma and all of our key stakeholders."
Our GAAP net loss was $4.2 million in the second quarter of 2012 compared to GAAP net income of $22.8 million in the second quarter of 2011. For the six month period in 2012, GAAP net income was $15.8 million compared to $59.2 million of GAAP net income during the first six months in 2011.
Non-GAAP adjusted net income for the three and six months ended June 30, 2012 was $6.7 million and $37.8 million, respectively, compared to $37.4 million and $82.9 million for the same periods in 2010. A reconciliation between GAAP and non-GAAP adjusted measures is provided in the Selected Financial Information Non-GAAP Financial Measures Reconciliation table included with this release.
Operating Highlights
Our net sales of Cinryze during the three and six months ended June 30, 2012 increased to $76.6 million and $144.8 million, respectively, from sales of $62.5 million and $119.0 million, respectively, during the same periods in the prior year due to demand growth. During the three and six months ended June 30, 2012,Vancocin net sales decreased to $15.9 million and $82.1 million, respectively, from sales of $65.2 million and $134.5 million, respectively, during the same periods in the prior year due to the introduction of generic vancomycin capsules.
Cost of sales increased for the three months ended June 30, 2012 as compared to the prior year quarter by $3.4 million and increased for the six months ended June 30, 2012 by $16.6 million compared to the prior year. These increases were primarily due to the effect of the shift in product mix from decreased sales of higher margin Vancocin to increased sales of lower margin Cinryze, and the royalty due to Genzyme for Vancocin sales which was not payable in 2011.
Research and development costs decreased in the second quarter of 2012 compared to the same period in 2011 as the spending in our various programs was offset by the $9.0 million upfront payment made to Halozyme in the 2011 quarter. Research and development costs in the first six months of 2012 were relatively comparable to the same period in 2011 for the same reasons. The increase in selling, general and administrative expenses in the three and six months ended June 30, 2012 periods compared to the same periods of 2011 was driven by the growth of our global organization and our European commercialization efforts.
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ViroPharma Incorporated Reports Second Quarter 2012 Financial Results