Nice article about Vertex in Barrons. Overall, it is very positive about the company and the stock. Some excerpts: "But Vertex has "a much better future ahead of it" than the stock price suggests, says Howard Liang, an analyst with Leerink Swann. Rival hepatitis C drugs are years away from the market, so Incivek sales should provide significant cash flow. Add to that there are seven new drugs in development, including potentially groundbreaking therapies for cystic fibrosis, and Vertex deserves better than the 6.7 times next year's earnings it now fetches." Regarding Kalydeco, "Sales could reach $700 million by 2018, says Barclays' Huang." Kalydeco combined with another drug "could provide a therapy for up to 90% of patients. And those sales could reach $3 billion by 2025, Huang adds." The final line of the article concludes with "But at a time when the drug industry is having a hard time making research and development pay off, Vertex is poised to deliver some potent returns."
Most of what was in the article is previously reported information, but it is nice to see it in this influential publication that reaches a wide audience of investors. I agree with Huang on the huge potential sales of the new Vertex CF drugs but I expect Vertex will reach those CF drug revenue levels years earlier than he is projecting.