Wells Fargo Upgrades Vertex (VRTX) to Outperform; Compelling CF Combo Data

Wells Fargo upgraded Vertex (NASDAQ: VRTX) from Market Perform to Outperform, price target range $68-72 fro $40-44.

Analyst, Brian Abrahams, said, "We are upgrading VRTX based on reported ph.II data we believe significantly increases the likelihood of ultimate success for their Kalydeco/VX-809 combo in the meaningful F508del CF subpopulation. In addition to increasing our probability of success, we are adjusting our model based on the strong data to account for a higher penetration within a slightly narrower (homozygous F508del) subpopulation, and slightly higher pricing (70% of current Kalydeco net price); we now believe if successful CF franchise sales overall could exceed $3B--helping sustain growth in the face of likely Incivek erosion...Our 2012E non-GAAP EPS increases to $3.61 from $3.56 due to model adjustments."

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 $58.12 yesterday.

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