The cost of drug research is not unique to Vertex. It is largely mandated by the federal law enforced by the FDA. The difference between the Vertex of 15 years ago (the time of the publication of Werth's first book prior to the approval of any Vertex drug) and now is like night and day. Business people are at the helm of the company and are prioritizing development resources which has resulted in financial stability of the company, Look at the street's analyst's average revenue and eps projections for VRTX in 2015 and you can see the science is finally going to generate a sustained profit with 809/770 being approved by the FDA. The R&D focus of the company will continue to be pursued with a reasonable allocation of the company's assets to allow for future growth. The initial vision of the founder will finally be realized but within the context of responsible financial stewardship for shareholders, That is why the stock is quite stable at the current stock price, and with each press release detailing further progress in the approval process for it's pipeline assets, the share price is only likely to rise further given the growth potential of these breakthrough treatments.
After the first year everything is profit??
How are they thinking here is a snippet form an article.
For starters, the science at Vertex is so complex and costly that a voyage to Mars looks easy by comparison. The company’s visionary founder and CEO Josh Boger tells his staff at one point, “If you give me 20 years and a half-trillion dollars, I guarantee I can put people on Mars and bring them back. I guarantee it … But making a new drug that changes people’s lives is almost beyond human understanding.” Reading Werth’s two books makes that a believable statement.
Vertex’s science is also potentially beyond our ability to fund. The company’s burn rate is spectacular. For much of the book, the company hemorrhages about $60,000 an hour.
Then at least buy some married puts. If u rode 65$ to 95$ you should have plenty available to buy some cheap insurance. Obviously, with a short percentage like it has/had many have not hedged.
You have no clue right? This stock is all about the CF franchise which recently met it's primary and secondary endpoints is a large phase III trial...Quotes about historical ratios etc.are similar backward looking and does not reflect the significant event that just happened.
Buy low, sell high..... 19X book, 23X sales. revenues went off a cliff QoQ. Insiders sold 35% of holdings in last 6 months.Low short percentage. Wish you the best.
Nothing on my radar yet for 765 but I don't expect so soon. There is another Oncology drug VXc 984 in development. I hope VX 509 moves into phase III trial sooner then later. It is a real deal in my opinion.
Thanks Rojo, great news for future growth of Vertex R&D pipeline and it sounds promising. Any further word on new or planned clinical trials testing VX 765 in the treatment of HIV?
VX 970 is VRTX new first in class oncology compound already in clinical trial in Europe since 09/2013 and now started phase 1 in North America. This drug enhances the effect of already existing chemotherapy drugs like Gemcitabine, Cisplatin and Etoposide and thus is added to already approved chemotherapy regimen. If proven safe and effective, could be a good asset in coming years as it will cover major cancer indications. My understanding is that this is NOT an immune modulator agent and is given as an IV Infusion.
You catch HEP C by sexual contacts with different partners or screwing with other people. Tell your senators that it might cost lot less by getting rid of these patients by improving the morale of your vote bank.
Sentiment: Strong Buy
The calls from certain members of Congress to explain high drug prices has no teeth in terms of laws. Both Gilead and Vertex continue to get their negotiated current rates for their breakthrough drugs world wide, often with discounts. Regulation on pricing would stopfurther drug research and development unless they eliminated the legally required and extremely costly regulatory development process which will never happen. If there is no reward for the high costs of development and the high risk of failure and potential competition, there would be no advances in treatments for these dreadful diseases by the pharm industry. Society eventually gets the opportunity to get the drugs at a severe discount after the patents expire and the drugs are generic (80% of all drugs sold in the US are now generic). In the meantime the investors who take all the financial risk for new drug development are entitled to the reward if they succeed after the average wait of 10 to 15 years in takes in the US from pre-clinical testing to approval. It's a high risk, but high reward investment, The investment process is part of capitalism. It is the reason HIV, Cancer, hep C and diseases like CF have finally received breakthroughs in treatment and patients are benefiting, along with those investors who took the financial risk . Also remember, government taxes the profits made on these drugs both from the drug companies and it's investors and employees, and thereby benefits as well from the tax revenues and the productivity of patients who are now able to work instead of being ill and disabled by their disease when these drugs are approved and getting prescribed.
I saw a Market Talk headline yesterday, but I did not know the source. Will they pay a 50% premium? It should not be sold below 150/shr.