Goldman Sachs Suggests Buying Calls on Vertex Pharmaceuticals (VRTX)

Goldman Sachs is out with a research note this morning, where it suggests traders buy calls on Vertex Pharmaceuticals VRTX ahead of several catalysts. Goldman Sachs SMid Cap Biotechnology Analyst, Terence Flynn, expects three upcoming catalysts to be positive for Buy-rated VRTX. 1. This week: Approval of Merck's Boceprevir (and pricing decision) 2. This month: “Significant” upside potential to shares from CF combo data; market opportunity could double vs low expectations 3. May 23: TVR approval date – Broader label, higher pricing Following the upcoming May 23 approval date for VRTX's key drug, TVR, the analyst also believes VRTX may become a more attractive M&A target. He sees 8% upside to his 12-month price target of $59, and 60% upside to his M&A value of $87. Goldman Sachs suggests buying the July $55 call for $3.90. Vertex Pharmaceuticals Incorporated is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of diseases. The company is engaged in phase-I clinical trials and/or nonclinical activities with respect to a range of additional drug candidates, including compounds intended for the treatment of hepatitis C virus infection, cystic fibrosis and influenza.