Stocks Retreat As Traders Are Not Impressed With The Restart Of Stimulus Talks

Stocks Retreat As Traders Are Not Impressed With The Restart Of Stimulus Talks

Anonymous

dayonehk.com
Shares of Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX ) were trading higher by nearly 4 percent on Thursday after the FDA approved the companys Orkambi (lumacafor/ivacaftor) for the treatment of cystic fibrosis patients 12 years and older. Commenting on the FDAs approval, Terence Flynn, PhD of Goldman Sachs noted that the timing and decision by the FDA was in-line with the July 5 PDUFA date and follows the FDA AdComs 12-1 recommendation for approval in May. Flynn noted that the drugs label is not yet available, but based on the FDA AdCom he isnt expecting any surprises. The analyst also added that pricing of Orkambi is not yet available, but is expected to be on par with Kalydeco ($312,000 a year) in the U.S. given a strong secondary endpoint data. Other reasons to support the $312,000 per year cost includes the fact that the analyst is not aware of any precedents to significantly cut prices on already approved drugs and an analysis of historical orphan drug pricing. Looking forward, the analyst is now expecting investor focus to shift to the drugs launch trajectory and the companys earnings power. The launch is expected to boost the company to profitability and the analyst is now modeling the company to report a non-GAAP earnings per share of $6.54 in 2016 and $9.75 in 2017. Shares remain Buy rated with an unchanged price target of $142 based on a 70/30 percent blend of DCF ($133) and M&A ($165). Latest Ratings for VRTX Jun 2015 RBC Capital Maintains Outperform Apr 2015 Citigroup Maintains Buy Apr 2015 Oppenheimer Assumes Perform View More Analyst Ratings for VRTX View the Latest Analyst Ratings See more from Benzinga Citi: Apple Still Top Pick In IT JP Morgan Remains Overweight Delta, Calls DOJ Collusion Investigation Humorous 8 Community Bank Stocks Face Mass Downgrade At Raymond James On Challenging Operating Environment © 2015 Benzinga.com. Benzinga does not provide investment advice. All rights reserved. View comments
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