Vertex Pharma (VRTX) to Collaborate with Parion on ENaC Inhibitors; Canaccord Genuity Maintains Buy

Canaccord Genuity maintains a Buy rating and $150.00 price target on Vertex (NASDAQ: VRTX) after the announced collaboration between VRTX and Parion. VRTX will collaborate with Parion to develop epithelial sodium channel (ENaC) inhibitors.

Analyst Adam Walsh commented, "Investors have long awaited news on the Vertex biz-dev front. They finally got it, and we like the deal. It fits well with the company's core CF competency (with a call option on additional pulmonary diseases), comes at a reasonable price, and any new drug approvals could be leveraged into the existing CF infrastructure. Vertex will collaborate with Parion to develop epithelial sodium channel (ENaC) inhibitors for the treatment of CF and other pulmonary disease. Vertex paid Parion $80M upfront, and will pay up to $490M in milestones, and tiered royalties on sales in exchange for WW development and commercial rights to Parion's lead ENaC inhibitors. Vertex will lead future development efforts in CF. P-1037 is currently in a P2a study in CF patients of all genotypes. Vertex intends to launch another P2a that combines P-1037 with Orkambi in F508del homozygous CF patients. Vertex maintained FY15 op-ex guidance."

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 $126.94 yesterday.

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