S&P MAINTAINS BUY OPINION ON SHARES OF VERTEX PHARMACEUTICALS
(S&P Capital IQ) Following VRTX's Q3 earnings report, we lower our net present value-based target price by $7 to $60, as Incivek sales continue to decline at a faster rate than we projected. Q3 adjusted breakeven results, vs. $0.56 EPS, including stock option costs, was below our $0.30 estimate, on lower revenues. We cut our '12 adjusted EPS view $0.64 to $0.75 EPS, and '13's by $1.41 to a $0.20 loss. While we see slowing Incivek sales eroding near-term profitability as VRTX proceeds with drug pipeline investments, we see a robust opportunity to expand its leading cystic fibrosis franchise.