Here's Why Investors Are Glued To Vertex Pharma (VRTX) Stock

Vertex Pharmaceuticals, Inc. (NASDAQ:VRTX) , which presently markets two cystic fibrosis (CF) drugs - Kalydeco and Orkambi - also boasts a strong CF pipeline. Its broad portfolio of next-generation CF correctors, which could bring in multi-billion dollar sales for the company if approved, has been attracting investor attention.

Vertex’s share priceis up 84% so far this year, comparing favorably to an increase of 10.6%for the Zacks-classified Biomedical-Genetics industry.

Vertex is developing many new combination regimens of Kalydeco(ivacaftor)with CFTR modulators. Vertex is evaluating CF corrector tezacaftor (VX-661) in combination with ivacaftor. The ivacaftor- tezacaftor combination is in phase III development (three studies are ongoing). In March, Vertex announced positive data from two phase III studies, EVOLVE and EXPAND. Both studies met their primary endpoints and demonstrated statistically significant improvements in lung function in patients with CF. Based on positive outcome from the studies, the company is planning to submit regulatory applications in the U.S. and EU in the third quarter of 2017.

Meanwhile, Vertex is also evaluating some next-generation CFTR correctors (VX-152, VX-440, VX-659 and VX-445) as part of a triple combination with tezacaftor and ivacaftor. Two separate phase II studies on the triple combination (VX-152/ tezacaftor/ ivacaftor and VX-440/ tezacaftor/ ivacaftor) are ongoing in CF patients. Data from both studies are expected in the second half of 2017. Phase I studies on the third and fourth next-generation corrector, VX-659 and VX-445 (triple combination with tezacaftor and ivacaftor) have been initiated. Data for the VX-659 triple combo study is also expected in the second half of 2017.

The multiple triple combo data readouts in CF patients, which are expected in the second half of this year, should keep investors glued to the stock. If the triple-combo regimes are successful, Vertex can address a significantly larger CF patient population. In fact, these triple combination CF regimens are considered crucial for long-term growth at Vertex.

Meanwhile, the company is also looking to buy CF candidates, which can be combined with tezacaftor and Kalydeco to create triple combinations. In March, Vertex announced an agreement to buy Concert Pharmaceuticals, Inc.’s (NASDAQ:CNCE) CF pipeline candidate, CTP-656. Vertex plans to develop CTP-656 for potential use in future once-daily regimens in combination with its other pipeline drugs to treat the underlying cause of CF.

We remind investors that the CF market represents huge commercial potential. It is a rare, life-threatening disease estimated to affect about 75,000 people in North America, Europe and Australia. The CF combination regimens, if approved, can strengthen its position further in this market, which can translate into higher revenues.

Vertex carries a Zacks Rank #3 (Hold). Better-ranked stocks worth considering in the sector include Regeneron Pharmaceuticals, Inc. (NASDAQ:REGN) and VIVUS, Inc. (NASDAQ:VVUS) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

VIVUS’ loss per share estimates narrowed 22% in 2017 in the last 60 days. The company delivered positive earnings surprises in all four trailing quarters with an average beat of 233.69%.

Regeneron’s earnings estimates have risen almost 10% for 2017 over the last 60 days. Shares of the company have risen 43.3% so far this year.

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