ViroPharma, Inc. (NASDAQ:VPHM)
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A biopharmaceutical company dedicated to the development and commercialization of products that address serious infectious diseases, with a focus on products used by physician specialists or in hospital settings.
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This stock is poised for a sharp rise. They have over $3 per share in cash and are poised to take over another small company with Phase III data but may be short on cash, like they did with Lev. This would raise VPHM's cash flow behind the already substantial levels. Investors have not taken notice of the stock this year due to bad news in Feb. 2009 and subsequent second quarter writedown. They have some made some smart deals in the past year (Cinryze) essentially have a generic drug (Vancocin) that is selling and growing like it is still under patent protection due to a trade secret that continues to lock out the competition and should continue to do so. I am not too worried about competition from Optimer's fidaxomicin, nor anticipated generic vancomycin competition. I love situations like this and do not find that many of them. Buy under $11. I would recommend to VPHM management that they consider an outright purchase of a another small company, like NBIX.