VRTX
Vertex Pharmaceuticals Inc
Healthcare, Event Driven/Special Sit
06/29/2015
Presented
| Date | 06/24/2015 |
| Price | $128.35 |
| Market Cap | N/A |
| Ent Value | $30.64B |
| P/E Ratio | N/A |
| Book Value | $4.01 |
| Div Yield | N/A |
| Shares O/S | 243.75M |
| Ave Daily Vol | 1,430,000 |
| Short Int | 1.66% |
Current
| Price | $484.30 |
| Market Cap | $125.00B |
| Vertex Pharmaceuticals Incorporated engages in discovering, developing, manufacturing, and commercializing small molecule drugs for patients with serious diseases in specialty markets. The company focuses on developing and commercializing therapies for the treatment of cystic fibrosis (CF); and advancing its research and early-stage development programs. It markets KALYDECO (ivacaftor) to treat patients of six years of age and older with CF who have the mutations in their cystic fibrosis transmembrane conductance regulator (CFTR) gene in the United States, Australia, Canada, and the European Union. The company also provides INCIVEK for the treatment of adults with genotype 1 hepatitis C virus infection. In addition, it is developing CFTR correctors, including lumacaftor in combination with ivacaftor, which has completed Phase III development program; and VX-661 in combination with ivacaftor, which is in Phase III development program. Further, it identifies and develops next-generation CFTR corrector compounds; and is involved in the research and early-stage development programs, including programs in the areas of oncology and neurology. Vertex Pharmaceuticals Incorporated sells its products principally to specialty pharmacy providers and wholesalers in North America, as well as government-owned and supported customers in international markets. The company has collaboration agreements with Cystic Fibrosis Foundation Therapeutics Incorporated; BioAxone Biosciences, Inc.; and Janssen Pharmaceuticals, Inc. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts. |
Publicly traded companies mentioned herein: AbbVie Inc (ABBV), Galapagos NV (GLPG NA), Gilead Sciences Inc (GILD), Pfizer (PFE), Sanofi SA (SNY), Vertex Pharmaceuticals Incorporated (VRTX)
Highlights
The presenter characterized Vertex Pharmaceuticals (VRTX) as "the single best target in the industry". Today, VRTX only sells one drug, Kalydeco (ivacaftor), that addresses ~7,000 of the 75,000 global cystic fibrosis (CF) population. However, assuming its new combination drug Orkambi (lumacaftor + ivacaftor) is approved by the FDA, it is likely to have two drugs on the market within the next month. Orkambi has the potential to quintuple the company’s target market from ~7,000 patients to ~35,000, and adding Orkambi to VRTX's P&L will “transform the financial profile of the business from $500 million of sales and no cash flow to $6.5 billion in sales and $3.5 billion of FCF”. Given the favorable risk/ reward, he is long VRTX stock and outlined his bullish view as follows:
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