Markets

Vertex Inks Deal With Genomics to Make Serious Disease Drugs

Vertex Pharmaceuticals, Inc.VRTX announced that it has signed a three-year collaboration deal with Cambridge, UK-based private biotech Genomics Plc to use human genetics and machine learning to identify novel targets, which can be developed into precision medicines for serious diseases.

Genomics is engaged in developing data resources and software solutions for diseases like cancer, microbes and other rare diseases. Genomics' unique analysis search engine is the largest in the world with more than 100 billion data points. Resorting to its machine learning tool and statistical algorithms, Genomics can easily comprehend the impact of therapeutic interventions.

Vertex has made a £10.5 million (around $13.7 million) equity investment in Genomics. Moreover, Vertex will make milestone and royalty payments to Genomics per terms of the collaboration contract. Dr. David Altshuler, chief scientific officer, Vertex will join the board of Genomics.

Shares of Vertex have rallied 24.1% year to date against the industry's decline of 2.2%.

Notably, Vertex's main area of focus is cystic fibrosis (CF). The company's lead CF products are Kalydeco and Orkambi.

Symdeko, a combination of tezacaftor (VX-661) and ivacaftor (Kalydeco), gained an FDA approval in February 2018 for the treatment of patients with CF, aged 12 years and above. The patients are also F508del homozygous or having at least one mutation, responsive to tezacaftor/ivacaftor.

In second-quarter 2018, total CF product revenues were $750 million, mainly driven by a rapid uptake and strong demand for the company's newest CF medicine, Symdeko.

Vertex Pharmaceuticals Incorporated Price and Consensus

Vertex Pharmaceuticals Incorporated Price and Consensus | Vertex Pharmaceuticals Incorporated Quote

Zacks Rank & Stocks to Consider

Vertex currently carries a Zacks Rank #3 (Hold). Better-ranked stocks in the pharma sector include Illumina, Inc. ILMN , Ligand Pharmaceuticals Inc. LGND and Gilead Sciences, Inc. GILD , all sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here .

Illumina's earnings estimates have been raised 12.1% for 2018 and 10% for 2019 over the past 60 days. The stock has soared 61.5% so far this year.

Ligand's earnings estimates have been raised 14.4% for 2018 and 3.7% for 2019 over the past 60 days. The stock has skyrocketed 88.1% year to date.

Gilead Sciences' earnings estimates have been moved 7.5% north for 2018 and 1.9% for 2019 over the past 60 days. The stock has gained 6.5% year to date.

5 Companies Verge on Apple-Like Run

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2018 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs. A bonus Zacks Special Report names this breakthrough and the 5 best stocks to exploit it. Like Apple in 2007, these companies are already strong and coiling for potential mega-gains.

Click to see them right now >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Ligand Pharmaceuticals Incorporated (LGND): Free Stock Analysis Report

Gilead Sciences, Inc. (GILD): Free Stock Analysis Report

Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report

Illumina, Inc. (ILMN): Free Stock Analysis Report

To read this article on Zacks.com click here.

Zacks Investment Research

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

VRTX GILD LGND ILMN

Other Topics

Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More