Canaccord Reiterates Positive View of Vertex Pharmaceuticals Inc. Following Partnership with Parion
Canaccord Genuity analyst Adam Walsh weighed in with an optimistic view on Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX), reiterating a Buy recommendation on the stock with a price target of $150, after the biotechnology company announced collaboration with Parion to develop epithelial sodium channel (ENaC) inhibitors. The stock is currently down 0.48% at $126.33 in mid-day trading
Walsh wrote, “Investors have long awaited news on the Vertex biz-dev front. They finally got it, and we like the deal. It fits well with the company’s core CF competency (with a call option on additional pulmonary diseases), comes at a reasonable price, and any new drug approvals could be leveraged into the existing CF infrastructure.”
Furthermore, “We derive a 12-month price target of $150 per share based on a probability-adjusted NPV of Vertex’s two lead products Kalydeco and VX-809/Kalydeco. Our model assumes 95% probability of success for VX-809/Kalydeco. Our NPV excludes net cash per share of $4.62, as well as VX-661, next-generation correctors and other pipeline candidates, which would be upside if successful.”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Adam Walsh has a total average return of 31.9% and a 85.7% success rate. Walsh has a 0.9% average return when recommending VRTX, and is ranked #272 out of 3610 analysts.