UPDATE: Bank of America Reiterates Buy, Raises PT to $32 on ViroPharma

Bank of America maintains its Buy rating on ViroPharma

and raises its target price to $32 from $23 on increased confidence reflecting three years of exclusivity through acquisition of Vancocin. BofA writes, “In our view, this development positively impacts EPS, visibility on cash flow, balances risk between multiple products and preserves an upside scenario that was difficult to model previously. We estimate Vancocin over the next 3 years will generate $500M in cumulative cash (~20% of market cap, +$3/sh NPV).” VPHM closed at $27.80 on Wednesday.