Goldman Sachs Suggests Buying Calls on Vertex Pharmaceuticals (VRTX)

Goldman Sachs is out with a research note this morning, where it suggests that traders buy calls on Vertex Pharmaceuticals Incorporated VRTX ahead of three key drug 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) should be stock moving for VRTX. 2. This month: “Significant” upside potential to shares from CF combo data; market opportunity could be double vs low expectations. 3. May 23: TVR approval date – Broader label, higher pricing, expecting positive catalyst for shares. Following the upcoming May 23 approval date for VRTX's key drug, TVR, he believes VRTX may become a more attractive M&A value of $87. Goldman suggests buying the July $55 calls for $5.70. Vertex Pharmaceuticals Incorporated is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of diseases.