Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX)
Vertex Pharmaceuticals stock is having an amazing day in the market today. After announcing that a regulatory hurdle has been cleared with regard to a cystic fibrosis drug developed by the company, investors seem to be incredibly excited. Today, we’ll talk about the regulatory hurdle that was cleared, what we’re seeing from VRTX as a result, and what we can expect to see from the stock moving forward. So, let’s get right to it…
VRTX Orkambi Should See Approval Soon
Orkambi is a cystic fibrosis drug candidate that was developed by Vertex Pharmaceuticals. The drug is expected to be a blockbuster; bringing in billions of dollars in revenue for VRTX. So, what’s the big hurdle? VRTX seems to have gotten the FDA’s Scientific Advisory Committee on board. Recently, the Scientific Advisory Committee heard presentations from FDA staff, VRTX representatives, and patients. Following the presentations, the committee made the decision to recommend Orkambi for approval. Although the FDA obviously isn’t required to approve medications based on Scientific Advisory Committee recommendations, it’s very rare that once a recommendation for approval is made, a drug is denied.
What Is Orkambi
Orkambi, as mentioned above, is a treatment for a specific genetic mutation known as F508del; which is known to be the cause of cystic fibrosis in about half of the patients that suffer from the ailment. In the United States, 30,000 people currently suffer from cystic fibrosis; and that number expands to 70,000 in the worldwide setting. Orkambi is said to treat the problem with only a single pill taken twice daily.
How VRTX Reacted In The Market
As we’ve come to expect any time a company gets overwhelmingly close to FDA approval for a new treatment, especially one that’s expected to be a blockbuster, the value of the company’s stock climbs. That’s exactly what we’ve seen so far today. Currently (1:08), VRTX is trading at $127.84 per share after a gain of 3.03% so far today!
What We Can Expect To See Moving Forward
Moving forward, I’m expecting to see more gains in both the short-term and long-term outlook for VRTX. The reality is that in the 26 years of the company’s existence, it has only been profitable one of those years. However, the billions of dollars in revenue expected from the blockbuster drug has the potential to bring the company into the green for the second time. With the FDA’s Scientific Advisory Committee giving a recommendation to approve Orkambi, it’s incredibly unlikely that the FDA will respond with a denial. So, I think it’s going to be all up from here my friends.
What Do You Think?
Where do you think VRTX is headed and why? Let us know in the comments below!