UPDATE: Jefferies Reiterates Buy, Ups PT to $33 on ViroPharma

Jefferies maintains its Buy rating on ViroPharma 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.