Vertex Pharmaceuticals Relapses To A Neutral Rating At H.C. Wainwright

Analysts Andrew Fein and Rachel Lane reiterated their opinion that their thesis is based on Vertex capability to find a way in the changing, as well as, crowded CF therapeutics segment. Their views were not related to Orkambi because of the mediocrity of the drug.

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The brokerage listed following four key factors to reach its conclusion on the stock:

• No change in underwhelming view on Orkambi.
• The 661/Kalydeco double is also not likely to perform better than Orkambi .
• Ongoing final stage program of 661 is not likely to yield any commercial upside.
• The expected triple combo continued to be far way.
• Even if triple combo is successful, it could only be a replacement and not complement Orkambi.
• The previous M&A thesis is at its lowest point of any likelihood.

In a research note, the analysts stated, "We have all seen VRTX once before lose everything in the HCV space, in our view, due to failure to adapt to change and stay competitive. While we are not saying that a collapse of similar proportions is likely in CF, we nonetheless suspect that VRTX is no longer well positioned to remain the leader of the pack in the future."

On Friday, the stock closed at $80.76.

Full ratings data available on Benzinga Pro.