ViroPharma expands deal to buy $4.5 million more in Vancocin from Eli Lilly

By E. Janene Geiss

Philadelphia, Nov. 3 - ViroPharma Inc. announced Thursday that it amended its manufacturing agreement with Eli Lilly and Co. in order to buy $4.5 million more in Vancocin to exceed ViroPharma's expectations for product demand.

ViroPharma made the change as part of its effort to anticipate potentially higher demand for the product should the incidence and severity of Clostridium difficile infection continue increasing at a higher-than-expected rate, company officials said in a news release.

"We want to ensure that all patients with severe C. difficile disease who need this life saving product have access to it. This amendment with Lilly is important to us and our patients as it helps provide this insurance," Michel de Rosen, ViroPharma's chief executive officer, said in the release.

Vancocin is indicated for the treatment of antibiotic-associated pseudomembranous colitis caused by C. difficile, a bacterium that can colonize the lower gastrointestinal tract where it may produce toxins that cause inflammation of the colon and diarrhea.

The amendment also intends to provide ViroPharma with an interim second source of supply to augment the company's third party supply chain, which is expected to be qualified during the first half of 2006, officials said.

Lilly has agreed to manufacture Vancocin through at least Sept. 30, 2006. The amendment does not affect Lilly's obligation to continue to manufacture Vancocin for an agreed upon period of time in the event that a third party supply chain is not qualified, officials said.

ViroPharma said it believes the product manufactured under this expanded agreement will ship to wholesalers during 2006.

According to the Centers for Disease Control, there are about 3 million causes of antibiotic-associated diarrhea per year, of which 15% to 25% are caused by C. difficile.

Exton, Pa.-based ViroPharma is a pharmaceutical company focused on development and commercialization of products that address serious diseases treated by physician specialists and in hospital settings.

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