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ViroPharma Incorporated Reports Fourth Quarter and Full Year 2008 Financial Results
Date:2/24/2009

diluted, compared to a net income of $0.29 per share, basic, and $0.25 per share, diluted, for the same period in 2007. Net income per share for the year ended December 31, 2008 was $0.95 per share, basic, and $0.83 per share, diluted, compared to net income of $1.37 per share, basic, and $1.21 per share, diluted, for the same period in 2007.

The primary drivers of the decrease in net income for the fourth quarter and year ended December 31, 2008 were the increase in R&D, SG&A and intangible amortization expenses, and lower interest income offset by the lower tax expense. Additionally, in the fourth quarter of 2008 we had a $2.3 million charge to write down to fair value our previous corporate headquarters which is currently held for sale.

Operating Highlights

During the three months and year ended December 31, 2008, net sales increased 4.9 percent and 14.0 percent, respectively, compared to the same periods in 2007.

The cost of sales for the three months and year ended December 31, 2008 increased $0.1 million and remained consistent, respectively, as compared to the same periods in 2007. For the three months and year ended December 31, 2008 the cost of sales was $2.1 million and $8.9 million, respectively, compared to $2.0 million and $8.9, respectively, for the same period in 2007.

Investment in our product pipeline and the company continued to grow as research and development (R&D) and selling, general and administrative (SG&A) expenses in the fourth quarter and year ended December 31, 2008 were $43.6 million and $131.7 million, respectively compared to $25.2 million and $72.9 million for the fourth quarter and year ended December 31, 2007, respectively. The quarter increases were due primarily to our investments in our infrastructure related to our development programs, costs to support the Cinryze open label trial and launch related costs, an
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SOURCE ViroPharma, Inc.
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