Morgan Stanley Downgrades Vertex Pharmaceuticals to Underweight
March 19, 2012 6:35 AM
Morgan Stanley lowers its rating on Vertex Pharmaceuticals (NASDAQ: VRTX [FREE Stock Trend Analysis]) to Underweight from Equal-weight on valuation concerns and pipeline risks.
Morgan Stanley says, "An NPV sum of parts (SOP, details inside) for us and consensus is $22-23/sh. The stock has risen ~60% over the past 4 mos. ($~26 to $~42) without a clear fundamental catalyst. To us, this implies that pipeline value may be up to 50% of the current stock price, with combo CF (where we are negatively biased) likely being the main focus."
No Catalyst for price rise? How about approval of Kaledeco, Good data on vertex nucleotide (I forget the product #)/telapravir/ribaviron in treating genotype1 hepc without interferon, good data using telapravir/peg-riba to treat HIV coinfected, news about the Gilead neucleotide/riba failure in genotype hepc non-responders?