J.P. Morgan Initiates Coverage on ViroPharma Incorporated

J.P. Morgan Chase & Co. is out with a research report on ViroPharma Incorporated VPHM and is initiating coverage with an Overweight rating and a $23 price target on shares. In a note to clients, J.P. Morgan Chase & Co. writes, "ViroPharma's value driver is Cinryze, an orphan drug for hereditary angioedema (HAE). HAE is a genetic disorder marked by swelling of the larynx and GI tract, which is often fatal. Based on discussions with key opinion leaders and our research on the HAE market, we think that the Cinryze trajectory is more robust than consensus. As such, our WW Cinryze forecasts are 12-20% ahead of the Street for 2012-2015. In addition, there are several upside levers for the franchise such as: 1) moving from an intravenous to a subcutaneous formulation, 2) added indications beyond just HAE, 3) ROW expansion beyond Europe, and 4) expansion of manufacturing capacity. Outside of Cinryze, we ascribe limited value for the Vancocin and Buccolam franchises ($3/share combined) and none for the pipeline. With current Cinryze opportunities not fully reflected in shares and multiple upside levers ahead, we rate VPHM shares Overweight." Shares of VPHM lost 43 cents yesterday to close at $17.64.