Piper Jaffray Comments On Vertex Pharmaceuticals' Phase III REALIZE Results

According to Piper Jaffray, Vertex Pharmaceuticals VRTX reported full Phase III REALIZE results in HCV interferon-failure patients showing a combined Sustained Virologic Response (SVR) rate of 65% vs. only 17% for standard of care. Piper Jaffray reported that importantly, Telaprevir achieved an SVR rate of 31% in hardest-to-treat prior null responders, 6x that of control arm at only 5%. “We are buyers of VRTX shares on weakness ahead of the late April AdComm meetings and Telaprevir's May 23rd PDUFA date. We reiterate our Overweight rating and $52 target based on an NPV of projected corporate cash flow through 2021 discounted back at 15%. Telaprevir approval could cause us to reevaluate our 15% discount rate and impact our price target.” Vertex Pharmaceuticals closed yesterday at $47.93.