Vertex Pharma (VRTX): Cutting PT On Slower Orkambi Uptake - Baird
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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.
Shares of Vertex closed at $88.84 yesterday.
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Related EntitiesRobert W Baird
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