Vertex Pharmaceuticals Will Use $100 Million to Tank Its Own Market Share. Here's Why That's a Smart Move.
Hot off the approval of its gene therapy for a pair of rare hereditary blood disorders, Vertex Pharmaceuticals (NASDAQ: VRTX) will soon have another therapy up for approval, and the financial implications are massive. But they're not massive just because it stands to crank out billions in additional revenue. Instead, the plan is to shell out the equivalent of $100 million so that the potential new drug can compete for the market share of one of its already commercialized medicines as soon as possible.
What's going on here? It's time to dig in and figure it out so that investors can decide what to do.
Per the results of a phase 3 clinical trial reported Feb. 5, Vertex's latest candidate for treating cystic fibrosis (CF), a rare and serious genetic disease of the lung, is both safe and effective. The medicine is currently called "vanza triple" because it combines the molecule vanzacaftor and two other drugs. One of the three compounds, tezacaftor, is already in one of the company's medicines on the market, though the others aren't.
Source Fool.com
Vertex Pharmaceuticals Inc. Stock
The stock is one of the favorites of our community with 44 Buy predictions and 2 Sell predictions.
With a target price of 405 € there is a slightly positive potential of 3.93% for Vertex Pharmaceuticals Inc. compared to the current price of 389.7 €.
