Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Vertex Falls as Analyst Cuts Hep C Sales Estimate: Boston Mover

Jan. 30 (Bloomberg) -- Vertex Pharmaceuticals Inc. fell the most in seven weeks after an analyst with Leerink Swann & Co. cut sales estimates for a hepatitis C pill made by the company that was approved by U.S. regulators last year.

Vertex’s Incivek, among the first new hepatitis C drugs to reach the market in almost a decade, may be eclipsed by new pill-only treatments with fewer side effects and shorter courses of treatment. Incivek is given with interferon, an injected medicine. Merck & Co.’s similar pill, Victrelis, was also approved last year.

Shares of Cambridge, Massachusetts-based Vertex fell 3.5 percent to $34.74 at the close in New York, their biggest one-day drop since Dec. 8.

Howard Liang, an analyst with Leerink Swann in Boston, reduced his sales forecast for Incivek by 35 percent from $2.3 billion this year to $1.5 billion. Liang also cut his target price for Vertex shares from $66 to $48.

“In light of recent development of interferon-free regimens and likely more aggressive development as a result of recent transactions in the space, we are further curtailing the Incivek tail,” Liang said in a note to clients today.

Vertex had $420 million in revenue from Incivek in the third quarter of 2011. Revenue from the drug accounts for 64 percent of the company’s sales.

To contact the reporter on this story: Drew Armstrong in Washington at darmstrong17@bloomberg.net;

To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.