Why ViroPharma Shares Spiked

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Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of ViroPharma , a biotechnology company specializing in treating rare diseases, rose as much as 14% after a report from Reuters noted preliminary buyout interest in the company.

So what: According to the report, three people familiar with the matter commented that several companies have shown early interest in acquiring ViroPharma to get a hold of its orphan drug pipeline, which includes hereditary angioedema drug Cinryze. The report also notes that ViroPharma is not currently pursuing a sale of the company.

Now what: I told you that you need to keep a close eye on ViroPharma! Cinryze sales still have plenty of room to run higher, and maribavir appears to be back from the dead. If maribavir's higher dosing proves effective enough in trials to gain approval, it, too, could add an additional $300 million in peak sales to ViroPharma's top line. While I wouldn't put too much faith in today's rumors that ViroPharma is on the auction block, I would certainly use this as an opportunity to get better acquainted with the company and its unique pipeline.

Craving more input? Start by adding ViroPharma to your free and personalized watchlist so you can keep up on the latest news with the company.

While you can certainly make huge gains in biotechs like ViroPharma, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.

The article Why ViroPharma Shares Spiked originally appeared on Fool.com.

Fool contributor Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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