ViroPharma, Inc. (NASDAQ:VPHM)
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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a raging value play combined w/tremendous growth potential
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new products coming on line. Lots of cash to back it up. Over beat down.
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Market has over reacted to possible duplication of product by a competitor. Fundamentals are still strong.
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good value
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ViroPharma stock declined when the Office of Generic Drugs was going to rule that a generic of their drug Vancocin would be allowed onto the market with clinical testing. Since this is their only commercial product this makes them a risky investment. However, with the current news of the milestone reached with Wyeth and the possibility that the Office of Generic Drugs may require the generic version of Vancocin to be tested before they will wllow it on the market I believe ViroPharma is headed for an uptick in their price.
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Stock has been hamered over the past 4 months -partly for some good reasons- but I believe that the market way overreacted. I am hoping for a correction early next year
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Picked by ria12
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Check out the P/E.
Viropharm is priced as if generic competition is a given. Any significant delays that allow its pipeline to mature, or any stumbles will allow it to rebound significantly from where it is, $13 - $15, allowing for a 40%+ gain from where it is.
While speculative in nature, the short-term significant upside vs. the lack of likely significant triggers in the short-term to the downside mean this is a reasonable play for a smaller, speculative part of a portfolio.
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