Canaccord Genuity Maintains a 'Hold' on Vertex (VRTX); Cutting Q4 and Out-Year Incivek Estimates

Canaccord Genuity maintains a 'Hold' on Vertex (NASDAQ: VRTX) price target dropped from $43 to $33.

Canaccord analyst, George Farmer, said, "Considering possible prescription trends expected to have a negative impact on Incivek sales this quarter, we lower our Q4 product sales est. to $494M from $568M, representing 18% from 35% q/q growth, respectively. We see a decline in new patient starts based on physician attendance at AASLD (and away from patients) and possible patient reluctance to begin treatment during the holiday season. Recall commencement of HCV treatment can easily be deferred by months to years depending mostly on perceived liver health. We expect script growth to pick up H1/12."

"We significantly slash out year Incivek growth expectations to a 2014-2017 CAGR decline of -60% from -28% on our view that this drug will be excluded from all interferon-free regimens expected to dominate the broad HCV treatment landscape. The stellar 100% sustained viral response observed with Pharmasset's (Nasdaq: VRUS) PSI-7977 plus ribavirin (ex-interferon) in GT2/3 patients reported at AASLD supports our view. Near equivalent efficacy is expected in GT1 patients (the predominant Incivek candidate pool), in our view."

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 $31.39 yesterday.

---

Serious News for Serious Traders! Try StreetInsider.com Premium Free!

---

You May Also Be Interested In

• Canaccord Downgrades York Space Systems (YSS) to Hold, 'Supply chain and contract timing uncertainty'
• William Blair Downgrades Enovix Corporation (ENVX) to Market Perform
• Seaport Global Securities Downgrades JetBlue Airways (JBLU) to Neutral