UPDATE: Jefferies Reiterates Buy, Ups PT to $33 on ViroPharma
Jefferies maintains its Buy rating on ViroPharma (NASDAQ: VPHM) as new Vancocin strategy is risky but may be worth up to $6/share.
Jefferies says, “VPHM announced the surprise approval of a new label for Vancocin, which they believe will provide 3 years of protection from a generic launch. Applying a 75% probability of success, this raises our price target from $28 to $33. Based on our initial diligence, the key risk is convincing the FDA that a generic Vancocin label without the new data is less “safe and effective.”
VPHM closed at $27.80 per share on Wednesday.
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