Looking at the recently updated numbers posted on the Yahoo Finance web site under the heading "analyst estimates," they have Vertex growing at more than 200% this quarter and more than 2100% next year. But the 5 year growth estimate is -214% Apparently, after rapid earnings growth from Incivek over the next year or so, they are predicting a rapid deceleration in earnings to the point of negative earnings. This implies they believe Vertex will lose all revenues from drugs to treat Hep C and no new revenues will be realized from VX770 and other drugs in the Vertex pipeline in the next 5 years. Ridiculous! Checked the Fidelity Investments research web site and it has the same estimates for Vertex earnings growth as Yahoo. As Vertex CEO Mathew Emmens said to Morgan Stanley analyst David Friedman at an investor conference in September, "Do you understand this company? I don't think so. By what I read, I don't think you understand our company. I'm going to do the best I can to prove you wrong again and again..."
That's why I said VRTX mgmt are amateurs and do not help the investors. The CEO insults Morgan Stanley. Sure, it might be true but look at the timeframe, VRTX seems to be going down ever since. Funny what analysts know.
Newsflash to the CEO, get on the analyst good side and help the damn stock and forget your pride.
You may be right. Maybe Vertex management needs to schmooze the analysts. I'm sure there is some legal or illegal unethical way to gain their favor. They should do for the analysts whatever Pharmasset is doing--could that be large amounts of cash in a plain brown wrapper?