UPDATE: Canaccord Initiates Vertex Pharmaceuticals with Hold on VX-809/Kalydeco Combination Therapy
In a report published Monday, Canaccord Genuity analyst Salveen Richter initiated coverage on Vertex Pharmaceuticals (NASDAQ: VRTX) with a Hold rating and $55.00 price target.
In the report, Richter noted, “The key value driver is VX-809 + Kalydeco combination therapy in homozygous ΔF508 cystic fibrosis (CF) with P3 data in 2014. Recent top-line P2 data is encouraging given a dose response (physicians are not as concerned with the monotherapy run-in decline) and per physician feedback, we expect ≥5% improvements in relative FEV1 in the P3 trials followed by substantial uptake in the ~24K eligible patients in the U.S./E.U. However, the near-term focus is on top-line P2 VX-661 (similar to VX-809) + Kalydeco data in Q2 to show efficacy comparable to VX-809 P2 data to provide comfort on VX-809 success and validate Vertex's CF discovery platform.”
Vertex Pharmaceuticals closed on Friday at $53.23.
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