MSGI, was any of the info you provided for VPHM not known to management before they released their guidance?
For the year 2005, ViroPharma expects the following:
-- Net product sales: $74 to $79 million, representing growth of
37% to 46% over unaudited net product sales of Vancocin in 2004;
-- Total operating expenses: $38 to $47 million;
-- Cost of sales: $12 to $13 million;
-- Cash balance: ViroPharma expects to be cash flow positive from
operating activities in 2005.
All other elements of guidance not updated above remain unchanged from the last guidance given on March 11, 2005.
Guidance provided on March 11, 2005 included $9.0 million to $10.5 million of royalties to Lilly in cost of sales. Current guidance does not include these royalties in cost of sales. We will account for the future royalty payments as contingent consideration and will record an adjustment to the carrying amount of the related intangible asset and a cumulative adjustment to the intangible amortization upon achievement of the related sales milestones.
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Does anyone (or you) know what assumptions the guidance given by management used for sales price increases? what did they model in for Vancocin growth? Thx.
AI
