UPDATE: Goldman Sachs Downgrades Vertex Pharmaceuticals to Sell on CF Combo Outlook

Goldman Sachs lowered its rating on Vertex Pharmaceuticals

from Neutral to Sell and reduced its price target from $55 to $43. Goldman Sachs noted, "We downgrade shares of VRTX to Sell from Neutral following 3Q12 results and the NACFC conference earlier this month, as we have a more cautious outlook on the company's key pipeline program (cystic fibrosis, CF combo) and see a limited number of catalysts heading into 2013. In our view, success of the CF pipeline is key to driving outer-year growth as VRTX's existing revenue base slows. We model a 10% revenue CAGR (2012-2015) if CF combo succeeds vs. -2% if it fails vs. peer group mean CAGRs of 15%-20%." Vertex Pharmaceuticals closed at $50.48 on Thursday.