UPDATE: Canaccord Upgrades Vertex Pharmaceuticals to Buy Following Release of VX-661 Data

In a report published Friday, Canaccord Genuity analyst Salveen Richter upgraded the rating on Vertex Pharmaceuticals

from Hold to Buy, and raised the price target from $55.00 to $96.00. In the report, Richter noted, “Last night, VRTX released P2 data from VX-661 monotherapy + combination therapy in cystic fibrosis (CF) patients with homozygous ∆F508 - the key takeaway being the 4.8% and 4.5% absolute FEV1 improvement (+9.0% and +7.5% in relative FEV1) from VX-661 (100mg and 150mg, respectively) + Kalydeco at day 28 (p = 0.01, 0.01, 0.01 and 0.02 vs. pbo), which we believe validates the CF corrector discovery platform and is encouraging for the ongoing P3 VX-809 trials in ∆F508 homozygotes given similarities between the drugs (though no VX-661 drug-drug interaction with Kalydeco). Given greater conviction on the P3 VX-809 program (dose response seen with the two correctors) and positive physician feedback on the likelihood for trial success and uptake, we are upgrading VRTX to a BUY and increasing our price target to $96 from $55 (increasing our probability of success in ∆F508 homozygotes to 85% from 60%).” Vertex Pharmaceuticals closed on Thursday at $52.87.