Vertex Pharmaceuticals, Inc. (NASDAQ:VRTX)

CAPS Rating: 4 out of 5

The Company is in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases.


Player Avatar ravens9111 (55.88) Submitted: 3/3/2012 8:36:07 PM : Outperform Start Price: $40.50 VRTX Score: +27.91

This is a long term hold, assuming they don't get bought out within the next five years. This stock has been beaten down badly the past few months because of the GILD purchase of VVUS and other possible interferon-free HCV drugs coming to market. The only problem here is that the VVUS drug was show to be ineffective during Phase II trials with a 70% relapse rate. GILD may be able to make some changes to improve the results, but either way, these competitors are years away from coming to market. What the market did not recognize is that VRTX has their own interferon-free drug in Phase II trials with results just released. The results were very positive. Analysts forecasts of competitors bringing new product to market is an overreaction as 2014 may be the earliest they are approved. By then, VRTX will have their own approved through VX-2222.The company also has their new Orphan Drug Kalydeco approved. Although there is only a small number of patients to be treated, current trials are underway to expand so more CF patients can be treated. Expected sales from Kalydeco should reach $350 million as the treatment costs about $250,000 per patient. Also under development in clinical trials are drugs to address rheumatoid arthritis, epilepsy, and influenza. The company is dedicated to continuing R&D to keep their pipeline producing new drugs to market.

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