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ViroPharma, (FRA:VPH) Financial Strength : 0 (As of Sep. 2013)


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What is ViroPharma, Financial Strength?

ViroPharma, has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

ViroPharma,'s Interest Coverage for the quarter that ended in Sep. 2013 was 2.89. ViroPharma,'s debt to revenue ratio for the quarter that ended in Sep. 2013 was 0.38. As of today, ViroPharma,'s Altman Z-Score is 0.00.


Competitive Comparison of ViroPharma,'s Financial Strength

For the Biotechnology subindustry, ViroPharma,'s Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ViroPharma,'s Financial Strength Distribution in the Biotechnology Industry

For the Biotechnology industry and Healthcare sector, ViroPharma,'s Financial Strength distribution charts can be found below:

* The bar in red indicates where ViroPharma,'s Financial Strength falls into.



ViroPharma, Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

ViroPharma,'s Interest Expense for the months ended in Sep. 2013 was €-2.8 Mil. Its Operating Income for the months ended in Sep. 2013 was €8.0 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2013 was €129.1 Mil.

ViroPharma,'s Interest Coverage for the quarter that ended in Sep. 2013 is

Interest Coverage=-1*Operating Income (Q: Sep. 2013 )/Interest Expense (Q: Sep. 2013 )
=-1*8.002/-2.766
=2.89

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

ViroPharma,'s Debt to Revenue Ratio for the quarter that ended in Sep. 2013 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2013 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 129.128) / 338.28
=0.38

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

ViroPharma, has a Z-score of 0.00, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


ViroPharma,  (FRA:VPH) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

ViroPharma, has the Financial Strength Rank of 0.


ViroPharma, Financial Strength Related Terms

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ViroPharma, Business Description

Traded in Other Exchanges
N/A
Address
ViroPharma, Inc. was incorporated in Delaware in September 1994 and commenced operations in December 1994. It is a biotechnology company which develops and commercializes products that address serious diseases, used by physician specialists or in hospital settings. The Company's main development programs include C1 esterase inhibitor and a non-toxigenic strain of C. The Company markets and sells Cinryze in the United States for routine prophylaxis against angioedema attacks in adolescent and adult patients with hereditary angioedema. Cinryze is a C1 esterase inhibitor therapy for routine prophylaxis against HAE, also known as C1 inhibitor deficiency, a rare, severely debilitating, life-threatening genetic disorder. Cinryze was obtained in October 2008, and On 8 January 2010, the company obtained expanded rights to commercialize Cinryze and future C1-INH derived products in certain European countries and other territories throughout the world as well as rights to develop future C1-INH derived products for additional indications. The Company also markets and sells Vancocin HCl capsules, the oral capsule formulation of vancomycin hydrochloride, in the U.S. and its territories. Vancocin is a potent antibiotic approved by the U.S. Food and Drug Administration, or FDA, to treat antibiotic-associated pseudomembranous colitis caused by Clostridium difficile infection, or C. difficile, and enterocolitis caused by Staphylococcus aureus, including methicillin-resistant strains. The Company's product development portfolio is consists of programs such as C1 esterase inhibitor [human], maribavir for cytomegalovirus infection, VP20621: prevention of recurrent CDAD and VP20629: treatment of Friedreich's Ataxia. The Company is working on developing further therapeutic uses; potential additional indications in other C1 mediated diseases, and alternative modes of administration for C1 esterase inhibitor. It is also developing VP20621 for the treatment and prevention of CDAD. On September 30, 2011, it entered into a license agreement for the worldwide rights of Intellect Neurosciences, Inc. to its clinical stage drug candidate, VP-20629, which is a naturally occurring, small molecule that has potent anti-oxidant properties that can protect against neurodegenerative disease. Its main competitors include both public and private entities, including well-known, large pharmaceutical companies, chemical companies, biotechnology companies and research institutions.

ViroPharma, Headlines

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