Chevy,What you state sounds rational,but look at Piper's note today:
"After the FDA forced Vertex to place a warning regarding fatal and non-fatal serious skin reactions on the boxes containing its INCIVEK HCV treatment, Piper Jaffray expects sales of the drug to decline further. The firm maintains a Neutral rating on the stock"
There had to be something that happened for the FDA to force Vertex to black box a warning now,the drugs been on the market for well over a year. Are you thinking the above Piper note is not true. IF so ,Vertex has grounds for a huge lawsuit against Piper.
if there are rashes and death (didn't the press release say if the drug is stopped at the onset of rash, the patient recovers??) the FDA and VRTX have to put a warning out there. The doctors know of it and are prepared/know what to do. It's less than 1% of patients (although the number is small) it's still 500 out of 50K patients. As for PJ, sales might drop (they are already) but the HCV sales is to fund research to get the CF expanded or any other drug they might be working on. Not sure why it was so strong in the morning and now it's sucking wind and falling. The FDA saw the problems and told VRTX (better than forced) to put the bb warning out there for communication and patients safety. From the press release, the doctors already knew of the rashes from the PhIII trial and already knew that if you stop the drug, the rash clears and nobody dies. This is just a formality and regulatory/safety action.