By Debbie Strickland

Seven months after completing an initial public offering (IPO), ViroPharma Inc., of Malvern, Pa., has registered for a public offering that could raise upwards of $30 million.

The ViroPharma offering consists of 2 million shares of common stock, with an overallotment option of 300,000 shares. The registration statement estimates net proceeds of $32.1 million, "at the assumed public offering price of $17.25 per share and after deducting the underwriters' fees and estimated offering expenses." A cash infusion in that amount would carry the company through the middle of 1999.

The underwriters are Cowen & Co. and J.P. Morgan & Co., both of New York þ the same two institutions that underwrote ViroPharma's disappointing IPO last fall.

Instead of raising $27 million, or $12 per share, the IPO generated $15.75 million, from shares priced at $7 each. The company had hoped to raise enough cash to carry its RNA virus research program through the end of 1998, but fell short by about six months worth of funding.

Since then, however, ViroPharma's share price (NASDAQ:VPHM) has more than doubled, closing Thursday at $16.25, down $0.75.

On June 11, the company released results of a Phase IIb viral meningitis clinical trial of its most advanced drug candidate, pleconaril, an oral liquid formulation of an active inhibitor of several RNA viruses.

Pleconaril aced the primary endpoint by slashing disease duration 58 percent -- a statistically significant result -- with no serious drug-related adverse events.

"Pleconaril's beneficial effect on multiple disease measures following oral dosing demonstrates that the study results are corroborating and consistent," said Jon Rogers, vice president of clinical research, in a prepared statement.

Proceeds from the public offering will fund further development of pleconaril, as well as support general corporate purposes, capital expenditures, and research and development programs for influenza, viral pneumonia, and hepatitis C.

Though ViroPharma's offering comes on the heels of good clinical news, the market for public offerings has been spotty of late, and this week has so far seen three Phase III clinical trial setbacks in biotechnology.

"I would not characterize this as an ideal market for raising capital," said Edmund Debler, an analyst with New York-based Mehta and Isaly. "It's definitely going to be challenging."

Founded in 1994, ViroPharma has collaborative agreements with Boehringer Ingelheim, of Ingleheim, Germany; Chiroscience Ltd., a division of Cambridge, U.K.-based Chiroscience plc; 3-Dimensional Pharmaceuticals Inc., of Exton, Pa.; and Sanofi SA, of Paris. The company licensed from Sanofi the rights to develop and market pleconaril in the U.S. and Canada.

In the quarter ending March 31, ViroPharma reported milestone revenues of $750,000 and a net loss of $1.7 million. It reported cash, cash equivalents and short-term investments of $21.7 million and working capital of $18.3 million. *