Goldman Sachs Suggests Buying Calls on Vertex Pharmaceuticals (VRTX)

Goldman Sachs is out with a research report this morning, where its analysts suggest that traders buy calls on Vertex Pharmaceuticals VRTX ahead of several catalysts. The analysts expect shares to be especially volatile around seven upcoming catalysts, most relating to TVR (Telaprevir), a new drug for HCV (hepatitis C infection) which could represent over 80% of VRTX sales by next year. TVR is at the leading edge of a paradigm shift for the treatment of HCV, a market that is expected to grow to $10-$12bn from $3bn following the introduction of new oral drugs, with improved cure rates and shorter treatment durations. They suggest buying the July $41.00 call for $3.50. Vertex Pharmaceuticals Incorporated is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases.