Morgan Stanley Talks New Vertex Data

In a report published Monday, Morgan Stanley analysts maintained an Equal Weight rating on Vertex Pharmaceuticals Inc (NASDAQ: VRTX), after the company announced data from a 12-week study of VX-661+ Kalydeco in adult CF patients with the F508del homozygous mutation.In the report Morgan Stanley noted, "The PhII study (n=39) evaluated VX-661 at either 100mg once daily or 50 mg q12h in combination with 150mg Kalydeco q12h. The primary endpoint was safety, while secondary endpoints included ppFEV1, and sweat chloride."The company has four Phase III trials that are underway to evaluate VX-661 (100mg once daily) + Kalydeco (150mg q12h) in CF patients, with one or two copies of theF508del mutation. "Overall, the study appears clean and demonstrates that VX- 661+Kalydeco can achieve statistically significant improvements in FEV1 - though we don't believe that was in question. While optically, the decline from week 4 to week 12 isn't great, given the small patient numbers, it's very hard to draw any significant conclusions from the data," the analysts said. "In addition, the relative lower rates of exacerbations and cough are consistent with the effect we would expect. However, with consensus hoping for a 5+ FEV1 improvement such that it could point to a potentially robust signal in heterozygotes, the results missed those high hopes (though we agree expectations had diminished post-4Q)," the report added."Thus, we see the data as in line to slightly below expectations and wouldn't be surprised to see some pressure on VRTX," the analysts commented.