Evercore ISI Analyst Gives Highlights From Vertex's Orkambi Call

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In a report published Friday, Evercore analyst Mark Schoenebaum mentioned that the Orkambi approval ROW of
Vertex Pharmaceuticals Incorporated VRTX
is on track with the EMA approval expected later in 2015. According to the Evercore report, "Royalties… Will move into low double digits with higher sales total for Kalydeco plus Orkambi (but… with both commercial milestone payments for Orkambi possibly coming due this year, when accounted for in cost of revenues… VRTX will in effect likely reach double digit royalties this year and then continue - although next year and years going forward expected double digit royalties simply due to higher CF sales)." The analyst believes that the biggest driver "gross to net" for the company's Orkambi candidate is that 35-40 percent of the population using it is Medicaid, while for Kalydeco the Medicaid population makes up about low to mid 20 percent of the users. The company's VX-661 program is on track and the Het-min trial is expected to start soon. "VRTX has regular FDA interactions and screening for US portion of trial already complete," analyst Mark Schoenebaum mentioned.
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Posted In: Analyst ColorAnalyst RatingsEvercore ISI
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