Piper Jaffray Reiterates Overweight on Vertex Pharmaceuticals (VRTX)

Piper Jaffray is out with its report on Vertex Pharmaceuticals VRTX, maintaining Overweight. In a note to clients, Piper Jaffray writes, "On Friday 5/13, Merck received approval for VICTRELIS in combination with peginterferon alfa and ribavirin for the treatment of chronic HCV genotype 1 patients who are previously untreated or failed interferon and ribavirin therapy. We understand the list price will be $1,100 per week, equating to $26,400-$39,600 per course of therapy. We read the label as broad despite language regarding lack of data in null responders and increased risk of anemia. We view the broad label and rapid approval of Victrelis as positive for INCIVEK approval by next Monday, May 23rd PDUFA date. We reiterate our Overweight rating and $63 price target based on an NPV of projected corporate cash flow through 2021 discounted back at 12%." Shares of VRTX closed Friday at $57.48, down 0.91% from Thursday's close.