VPHM news a/h. Gross margins to improve on Vancocin starting during the second half of 2006.
ViroPharma Announces Approval of Third Party Manufacturing and Supply Chain for Vancocin
PR Newswire - April 19, 2006 16:30
EXTON, Pa., April 19, 2006 /PRNewswire-FirstCall via COMTEX/ -- ViroPharma Incorporated (Nasdaq: VPHM) today announced the successful completion of the finished goods technology transfer from Eli Lilly and Company to OSG Norwich Pharmaceuticals, Inc., the company's third party Vancocin(R) manufacturer. Norwich has begun manufacturing batches of product for release into the market. ViroPharma has also reached an agreement with, and validated, Alpharma Inc., the company's third party supplier of the active pharmaceutical ingredient for Vancocin. With this, the company has now completed validation of its third party supply chain for Vancocin, which is indicated for the treatment of antibiotic-associated pseudomembranous colitis caused by Clostridium difficile.
"This is a great step forward for ViroPharma and the patients we serve," commented Josh Tarnoff, ViroPharma's Chief Commercial Officer. "Vancocin is a product that addresses a life-threatening condition, and is a difficult product to manufacture to necessary specifications to ensure stability and potency. The validation of the supply chain represents the successful conclusion of nearly two years of diligent work by ViroPharma, Eli Lilly and Norwich."
As previously described, ViroPharma anticipates improvements in gross margins, due to the qualification of this third party supply chain, beginning in the second half of 2006, as product manufactured in the Lilly facility is pulled through the channel.
C. difficile is a bacterium, which under certain circumstances, typically after antibiotic therapy, can colonize the lower gastrointestinal tract where it may produce toxins which cause inflammation of the colon and diarrhea, and the associated complications of disease, including death. Advanced age, gastrointestinal surgery/manipulation, long length of stay in healthcare settings, a serious underlying illness and compromised immunity are conditions associated with increased risk of disease. According to the CDC, there are approximately 3,000,000 cases of antibiotic-associated diarrhea per year; 15 to 25 percent are caused by C. difficile.
