Vertex Pharmaceuticals (VRTX) NewsBite - Vertex Down on Schering-Plough Drug Results

Monday, August 04, 2008 10:36 AM EDT

Vertex Pharmaceuticals (NasdaqNM: VRTX) opened at $28.34. So far today, the stock has hit a low of $27.73 and a high of $30.01. VRTX is now trading at $29.16, down $3.54 (-10.83%). The stock hit its 52-Week high of $41.42 in September and set its 52-Week low of $13.84 in March. Vertex Pharmaceuticals shares have been plunging after Schering-Plough (SGP) reported positive results of a Phase II test of boceprevir, the company's investigational oral hepatitis C protease inhibitor and anti-HPV drug. Analysis of the study indicates that the patients responded positively to boceprevir. The favorable results of the trial of Schering's boceprevir are negative for Vertex which has developed its own HPV treatment. Technical indicators for the stock are bullish and S&P gives VRTX a positive 4 STARS (out of 5) buy ranking. If you are looking for a hedged play on VRTX the stock seems like it could be a candidate for a September out-of-the-money bear-call credit spread above the 35 range. [ABR-Seven Summits Strategic Investments NewsBite]

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