Vertex Pharmaceuticals Beats Merck in Hepatitis C Drug Sales
By Oliver Renick - Jul 29, 2011 5:45 PM ET
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Vertex Pharmaceuticals Inc. (VRTX) rose the most in three months after the company reported revenue from its new hepatitis C drug that was twice the sales projected by analysts and three times that of a rival drug from Merck & Co.
Vertex, based in Cambridge, Massachusetts, said second- quarter sales of the treatment, called Incivek, were $75 million, more than double the $35 million estimate of 11 analysts surveyed by Bloomberg. The company rose $3.88, or 8.1 percent, in Nasdaq Stock Market trading to $51.86, the largest one-day gain in three months.
The better-than-expected sales suggest that Vertex’s Incivek has the market lead against Merck & Co.’s rival drug for hepatitis C, a viral infection of the liver that affects 3.2 million people in the U.S., according to the Centers for Disease Control and Prevention. Incivek sales are expected to reach $637 million for 2011, according to 11 analysts surveyed by Bloomberg. That compares with about $128 million for Merck’s hepatitis C treatment Victrelis, according to three analysts.
“Vertex delivered a blow to pessimists, skeptics and cynics by more than doubling consensus for Incivek’s first quarter of sales,” said Geoffrey Porges, an analyst at Sanford C. Bernstein & Co. in New York, in a note to investors today. Porges has an ”outperform” rating on the stock.
Merck, which reported second-quarter results today, said Victrelis generated $21 million in sales. Victrelis and Incivek both received U.S. Food and Drug Administration approval to market their drugs in May.
Beating Revenue Estimates
Vertex yesterday reported revenue of $114.4 million in the second quarter, topping the $55.9 million estimate of 20 analysts in a Bloomberg survey. The company narrowed its net loss to 85 cents a share, compared with $1.00 a year ago, beating the $1.01 estimate of 17 analysts.
“Merck acknowledged that Victrelis’s complicated dosing has been an issue for physicians,” said Brian Abrahams, an analyst at Wells Fargo Securities New York, in a statement to clients today. “The better profile and simpler dosing of Incivek provide important practical advantages for Vertex.”
Merck, based in Whitehouse Station, New Jersey, fell 80 cents, or 2.3 percent, to $34.13 today after announcing it will cut as many as 13,000 jobs by 2015.
To contact the reporter on this story: Oliver Renick in New York at orenick@bloomberg.net.
To contact the editor on this story: Reg Gale at rgale5@bloomberg.net.
By Oliver Renick - Jul 29, 2011 5:45 PM ET
inShare
1More Print Email
Vertex Pharmaceuticals Inc. (VRTX) rose the most in three months after the company reported revenue from its new hepatitis C drug that was twice the sales projected by analysts and three times that of a rival drug from Merck & Co.
Vertex, based in Cambridge, Massachusetts, said second- quarter sales of the treatment, called Incivek, were $75 million, more than double the $35 million estimate of 11 analysts surveyed by Bloomberg. The company rose $3.88, or 8.1 percent, in Nasdaq Stock Market trading to $51.86, the largest one-day gain in three months.
The better-than-expected sales suggest that Vertex’s Incivek has the market lead against Merck & Co.’s rival drug for hepatitis C, a viral infection of the liver that affects 3.2 million people in the U.S., according to the Centers for Disease Control and Prevention. Incivek sales are expected to reach $637 million for 2011, according to 11 analysts surveyed by Bloomberg. That compares with about $128 million for Merck’s hepatitis C treatment Victrelis, according to three analysts.
“Vertex delivered a blow to pessimists, skeptics and cynics by more than doubling consensus for Incivek’s first quarter of sales,” said Geoffrey Porges, an analyst at Sanford C. Bernstein & Co. in New York, in a note to investors today. Porges has an ”outperform” rating on the stock.
Merck, which reported second-quarter results today, said Victrelis generated $21 million in sales. Victrelis and Incivek both received U.S. Food and Drug Administration approval to market their drugs in May.
Beating Revenue Estimates
Vertex yesterday reported revenue of $114.4 million in the second quarter, topping the $55.9 million estimate of 20 analysts in a Bloomberg survey. The company narrowed its net loss to 85 cents a share, compared with $1.00 a year ago, beating the $1.01 estimate of 17 analysts.
“Merck acknowledged that Victrelis’s complicated dosing has been an issue for physicians,” said Brian Abrahams, an analyst at Wells Fargo Securities New York, in a statement to clients today. “The better profile and simpler dosing of Incivek provide important practical advantages for Vertex.”
Merck, based in Whitehouse Station, New Jersey, fell 80 cents, or 2.3 percent, to $34.13 today after announcing it will cut as many as 13,000 jobs by 2015.
To contact the reporter on this story: Oliver Renick in New York at orenick@bloomberg.net.
To contact the editor on this story: Reg Gale at rgale5@bloomberg.net.