ViroPharma launches follow-on sale of 7 million shares via Goldman Sachs

By Ronda Fears

Nashville, Nov. 28 - Antibiotic developer ViroPharma Corp. launched a follow-on offering of 7 million shares after Monday's closing bell to be sold off the shelf via bookrunner Goldman Sachs & Co.

Piper Jaffray & Co. is joint lead manager. Co-managers are SG Cowen & Co. LLC and Lazard Capital Markets LLC.

There is a greenshoe of 1,050,000 shares available.

Exton, Pa.-based ViroPharma intends to use proceeds for working capital and general corporate purposes, including the possible repayment of all or part of its 6% subordinated convertible notes due March 2007 and for business development purposes.

The 6% convertible due 2007 was seen last week at 99.5, according to a sellside convertible market source, but the issue was not seen in trade Monday. ViroPharma shares ended Monday off with the sector, losing 73 cents on the day, or 4.12%, to close at $17.00. But in after hours trade the follow-on deal pushed the stock lower.

ViroPharma shares were seen in after-hours trading at $15.83, off from the closing level by another $1.17, or 6.88%.

Earlier Monday, ViroPharma said that it has completed enrolling patients in a phase 2 clinical trial for its cytomegalovirus inhibiting drug Maribavir, an oral antiviral drug that inhibits cytomegalovirus, for the treatment of infection in bone marrow transplant patients. The company said it hopes to have preliminary data available by the end of the first quarter and to begin phase 3 testing by the middle of 2006.

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