Vertex Pharma (VRTX): Cutting PT On Slower Orkambi Uptake - Baird

September 29, 2016 6:29 AM EDT
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Price: $80.76 -2.6%

Rating Summary:
    28 Buy, 13 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 14 | Down: 11 | New: 8
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Baird analyst, Brian Skorney, reiterated his Neutral rating on shares of Vertex (NASDAQ: VRTX) and cut the price target to $115 from $128.Vertex Pharma (NASDAQ: VRTX)

Vertex's updated guidance shows slower ex-US uptake and lower compliance to Orkambi in the U.S. This knockdown of sales estimates is not entirely surprising given management's recent 'disclosure' of a slowdown in refills during the summer, but as a result, the analyst is taking down the price target to $115. He does see potential for Vertex to expand its stake in CF over the next few years with VX-661-based regimens.

This formal guidance adjustment comes after the company had already indicated that refills for Orkambi during the summer months of July and August were coming in slower than expected. FY16 Orkambi sales are expected to be $950-990M (down from $1-1.1B). Vertex is expecting 3Q16 Orkambi revenue to be $230-235M, sequentially down from last quarter's $245M.

For an analyst ratings summary and ratings history on Vertex click here. For more ratings news on Vertex click here.

Shares of Vertex closed at $88.84 yesterday.

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