Market Overview

Goldman Sachs Suggests Buying Calls on Vertex Pharmaceuticals (VRTX)


Goldman Sachs is out with a research report this morning, where its analysts suggest that traders buy calls on Vertex Pharmaceuticals (NASDAQ: VRTX) ahead of several catalysts.

The analysts expect shares to be especially volatile around seven upcoming catalysts, most relating to TVR (Telaprevir), a new drug for HCV (hepatitis C infection) which could represent over 80% of VRTX sales by next year.

TVR is at the leading edge of a paradigm shift for the treatment of HCV, a market that is expected to grow to $10-$12bn from $3bn following the introduction of new oral drugs, with improved cure rates and shorter treatment durations.

They suggest buying the July $41.00 call for $3.50.

Vertex Pharmaceuticals Incorporated is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases.


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