Coverage of the shares of this pharma was just initiated by SunTrust Robinson Humphrey, with a ‘Buy’ rating. The company also announced that patients in Ireland will now have access to its cystic fibrosis treatment regimens: (lumacaftor/ivacaftor) and SYMKEVI® (tezacaftor/ivacaftor), and expanded access to KALYDECO® (ivacaftor).
Vertex Pharmaceuticals Incorporated (VRTX)
From Cabot Growth Investor
We had Vertex Pharmaceuticals Incorporated (VRTX) on our watch list way back in mid-2017 as the stock was storming ahead, the company was positing massive growth thanks to its cystic fibrosis (CF) treatments and the pipeline was chockfull of future opportunities. But we never bought it, the stock stalled out, and as of a month ago, it was at the same level!
But now VRTX appears ready to move, with the catalyst being an early approval (five months ahead of schedule) of the firm’s new triple-combination treatment for CF that will greatly expand
the number of patients Vertex can treat.
Because of that (and a higher-than-expected price tag), analysts see earnings basically doubling from this year to 2021! The stock ripped to new highs on big volume after that news and held those gains following its Q3 report. While there could be round number resistance at 200, we think the risk-reward of buying around here (a 10% to 12% loss limit should be plenty) is attractive.
VRTX isn’t going to double in a month or two, but we think it has the makings of a liquid leader after a long rest period. We’re adding a full position (10% of the portfolio) tonight. BUY.
Michael Cintolo, Cabot Growth Investor,www.cabotwealth.com, 978-745-5532, November 7, 2019