While it is quite volitale short term, I consider the following as the reasons to own vrtx shares: . 6 clinic trials in pipeline; . new cancer drug could be blockbuster though it will be long way to go; . funding for drug discovery is visable in the next two years; . share price is in the range as 5 years ago; . Most analysts downgraded vrtx already in last Nov.
5 years ago VRTX had more drugs in later stage trials in its pipeline; it hadn't had the clinical trials flops (its whiz bang computer modeling and novel development platform were supposed to minimize the risk of this);it had more collaborative partnering programs and more partnering and milestone payments coming in the door; it had about $500 million more in cash on hand and it was burning far less cash;and Boger and Sato hadn't yet cashed in two tons of their VRTX chips.
Yes, but that is one of the reasons the stock has tanked to the toilet to these levels. However, at these levels it has been an overkill IMHO.
There is at least one promising product in phase IIb, Merimepodib, which may also have a good chance for expedited approval since there is no effective therpy for a good percentage of HCV patients with present drugs.