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Baird Releases Comments After Vertex Earnings Call

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This morning, analysts at Baird released comments following Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX)'s fourth quarter conference call that was held on Wednesday. The stock is trading down about 6 percent.

Kalydeco Sales

Vertex Kalydeco revenues were down on a quarter over quarter basis at $124.4 million. However, Kalydeco revenues did beat the consensus estimate of $122.6 million.

The analysts stated: "Efforts to increase access and expand the current label in certain geographies continue as Vertex pushes to maximize Kalydeco's earning potential. We believe that the progress made on these two fronts will translate into steady growth bringing our 2015 Kalydeco revenue estimates to $567.7m, in line with company guidance."

Drug Approval

Vertex is expecting to receive approval for the lumacaftor/ivacaftor combination drug that has a PDUFA date of July 5. The company is preparing to launch the drug in the second half of 2015.
The company is also expecting to receive European Union approval late in 2015.

Pipeline Progress

Some investors were hoping Vertex would release an interim analysis or give a positive update on the Phase 2b F508del homozygous trial. The company did not release any data, but did give guidance.

Baird analysts stated: "Interim analysis on the Phase 2b in F508del homozygous patients has begun with top-line data expected by the end of the quarter. In addition to this study, management is gearing up to kick off their Phase 3 program of ivacaftor/VX-661 featuring various populations outlined in their 2015 preview. Management guided that data from these studies probably wouldn't be seen until 2016."


Baird continues to rate Vertex as an Outperform and has a $131 price target on the stock.

Latest Ratings for VRTX

Oct 2016H.C. WainwrightDowngradesBuyNeutral
Oct 2016JefferiesMaintainsBuy
Sep 2016JefferiesMaintainsBuy

View More Analyst Ratings for VRTX
View the Latest Analyst Ratings

Posted-In: Analyst Color FDA Analyst Ratings


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