Needham & Company Maintains a 'Hold' on Vertex (VRTX); Raising Incivek Sales Estimates, But Concerns Remain
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Price: $505.75 -2.07%
Rating Summary:
38 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
38 Buy, 7 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Needham & Company maintains a 'Hold' on Vertex (NASDAQ: VRTX).
Needham analyst says, "Vertex reported $75MM in 2Q11 Incivek sales. The drug was launched in May 2011. Based on IMS data, the launch continues to go well, exceeding our expectations. We are raising our 3Q11 and 2011 Incivek sales estimates to $318M and $890M, respectively (was $225M and $599M)."
"We have been cautious on the stock given $10B valuation (EV), high investor
expectations for the Incivek launch, and our concern that other candidates under development at competitors may limit long-term sales potential. While the launch has gone well, we are increasingly impressed by the efficacy, safety, and tolerability data of other compounds under development at competitors.�Consequently, we continue to believe that in the intermediate to long-term, Vertex’s HCV efforts are vulnerable. In our opinion, news flow from competing�HCV program may limit upside for the stock in the near-term. A risk to our rating includes positive surprises from the CF program, in particular VX-809 or VX-661, which may substantially expand the addressable CF population for VX-770."
For more ratings news on Vertex click here and for the rating history of Vertex click here.
Shares of Vertex closed at $53.18 yesterday.
Needham analyst says, "Vertex reported $75MM in 2Q11 Incivek sales. The drug was launched in May 2011. Based on IMS data, the launch continues to go well, exceeding our expectations. We are raising our 3Q11 and 2011 Incivek sales estimates to $318M and $890M, respectively (was $225M and $599M)."
"We have been cautious on the stock given $10B valuation (EV), high investor
expectations for the Incivek launch, and our concern that other candidates under development at competitors may limit long-term sales potential. While the launch has gone well, we are increasingly impressed by the efficacy, safety, and tolerability data of other compounds under development at competitors.�Consequently, we continue to believe that in the intermediate to long-term, Vertex’s HCV efforts are vulnerable. In our opinion, news flow from competing�HCV program may limit upside for the stock in the near-term. A risk to our rating includes positive surprises from the CF program, in particular VX-809 or VX-661, which may substantially expand the addressable CF population for VX-770."
For more ratings news on Vertex click here and for the rating history of Vertex click here.
Shares of Vertex closed at $53.18 yesterday.
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