Vertex (VRTX) Sinks on Citi Downgrade

Yesterday, shares of Vertex Pharmaceuticals (Nasdaq: VRTX) hit a new 52-week low on news that its lead hepatitis-C treatment, telaprevir, will likely not begin to seek FDA approval until mid-2010. Vertex has hit another new 52-week low, today at $18.83, as analysts are now responding to the announcement.

Vertex fell more than 10% yesterday after the Company announced it would begin a pivotal late stage trial of telaprevir, but also told investors that data from the trials would not be used to seek approval until mid 2010, meaning that if approved, the hepatitis-C drug probably would not hit the market until 2011.

Shares of Vertex have sunk by almost 6% this morning as Citigroup downgraded the stock from Buy to Hold and cut its price target in half, from $52 to $25. The firm cited a lack of positive catalysts in 2008 and an HCV market that will likely be crowded by the time Vertex's telaprevir is ready for use.

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