The problem with not being able to produce very much of a product is that minor issues get amplified in the sales figures. And even if those explanations are reasonable, investors often don't buy them.
Witness ViroPharma
That's the more relevant number, because the patient count will drive future sales assuming discontinuation rates remain low. Interestingly, of the 60 patients added this quarter, which is a good chunk for an orphan drug, 30% came after trying one of the three acute therapies for hereditary angioedema: CSL Behring's Berinert, Dyax's
The biotech lowered guidance for the year, which was to be expected after Watson Pharmaceuticals
The biggest issue for ViroPharma right now is getting the industrial-scale manufacturing of Cinryze approved to meet the increasing demand. The company resubmitted its application this month after getting turned down initially. The Food and Drug Administration has until August to respond, but ViroPharma is hopeful that it could get a decision earlier. The company has 10,000 doses already produced at the larger scale, so it only needs to slap labels on them and then they can be released a few weeks after approval.
Yesterday's drop might be a buying opportunity, although ViroPharma is still risky given the supply constraint. Risk adverse investors should wait until after the approval of the industrial-scale manufacturing. If you'd like to keep up with the happenings at ViroPharma, add it the Fool's My Watchlist service. Don't have an account? No problem; sign up for free.