Purely looking at cash flow - it appears to me Vertex is going to burn a little cash next year. Given consideration of the timing of clinical results, potential revenue streams, and assets on hand... I think focusing on 809 and the additional 770 indications are in Vertex's best short term interest.
The analyst clearly did not understand the differentiation between 809 and 661.
Vertex has 1.2 billion in cash. Even a small burn rate next year would be insignifcant to investors looking for many billions in sales of 809 and 770 in 2014. Remenber Pharmasett got bought out for 11 billion for a single Phase 2 drug in hep C which has yet to enter Phase 3 testing.
Vertex pipeline has much greater potential.
Why is the GS analyst 'cautious' about the Vertex pipeline in next few months? Annnoucemnts and resutls to be released in the next few months include Phase 2A clinical trial results for VX 787 and 661, initiation of Phase 2a combination trials with VX 135, and next year completion of VX 770 expanded lablel Phase three trials to allow submission of the expanded label for Kalydeco monotherpy next year, and initiation of Phase 3 809/770 trials for CF 508 homozygotes, and of course results from VX 509 RA study and initiation of 509 studies in multiple other inflammatory diseases.....These events will certaily be catalysts for the stock price, and this analyst has it wrong.