Change in fundamentals yet no change in share price
Interesting that one of the leading competitors to Incivek dominance of the HepC market, BMY, has had their lead next-generation treatment regimen fail, and yet VRTX share price hasn't responded accordingly. It's one of those cases where the fundamentals for VRTX just improved considerably without the market acknowledging it.
Looks like market is trying to tell us something here. The message may be that either the company is fairly priced or over valued at this point in time. Absent any more positive news we won't be going up much from here imho. Perhaps if co announces it has started selling cf medicine in Europe ( where it's been approved ) , this might attract new buyers. Seems like co should promote itself more actively than is the case now.
Today's price actionis a vote of confidence for GILD management's ability to negotiate the approval process and another big vote of no confidence in the ability of VRTX management to capitalize on BMY's failure.
Silly given that VRTX has brought 3 drugs to the market, and has several more promising candidates making their way through the regulatory process.
If 7977 hits any roadblocks in its development path, GILD is screwed. For instance, it could prove necessary to combine a nuc like 7977 with a protease inhibitor in order to produce a high frequency of sustained viral responses for multiple HepC genotypes.
Incivek is underrated by the Street at the moment.