UPDATE: Barclays Capital Initiates Coverage on Vertex Pharmaceuticals with Equal-Weight Rating, $120 PT on Leading Position in CF Market

In a report published Tuesday, Barclays Capital analyst Geoffrey Meacham initiated coverage on

with an Equal-Weight rating and $120.00 price target. In the report, Barclays Capital noted, “Vertex's leading position in the CF market should be further augmented in 2015 with the launch of the Kalydeco/VX-809 combo in patients homozygous for the F508del mutation. That said, we think that it will take time for seamless reimbursement and broad access to be established in the US / EU. As a result, we're modestly ahead of consensus on 2015 combo sales (~$75M) but meaningfully ahead on 2016 sales (~$230M). In the pipeline, the 1H15 launch of a broad Kalydeco/VX-661 phase 3 program could further expand Vertex's reach in CF, but data release is likely a 2016 event. Overall, we're very impressed with Vertex's CF franchise, but we think that both pipeline catalysts and upside potential in CF are weighted more to 2016, not 2015. Hence, we're initiating coverage with an Equal Weight and $120 price target.” Vertex Pharmaceuticals closed on Monday at $121.03.