Biotech Values

[DewDiligence]

This might be a good time for VRTX longs to take some chips off the table. The enterprise value now exceeds $10B.

Telaprevir will clearly be a big-selling drug, but for how long? The rate of new HCV infections is small, so there will be fewer patients to be treated in 5-10 years than there are today.

Moreover, newer and better HCV protease inhibitors are coming that will, in all likelihood, supplant the first-generation PI's within a few years (#msg-62384804).

Despite scientific success in CF, VRTX is essentially a one-trick pony. For all practical purposes, it’s a short-lived trust fund for Telaprevir profits.