About 70,000 patients suffer from CF worldwide. 65,000 of these patients are in the U.S. and Europe. With this tremendous market potential, Vertex is expected to generate $10 billion in additional annual revenue after approval.
Additionally, Vertex is administering phase 2 testing of another drug, VX-135, for the treatment of hepatitis C. Patients have shown significant reduction of the hepatitis C virus during this stage.
Although medication for hepatitis C is available, the cure rate is only 50%-60%. VX-135 provides patients with simpler and more tolerable treatment regimens. This drug is also expected to provide higher cure rates. With about 170 million Hepatitis C patients worldwide, the successful testing of the drug will be a significant revenue driver for Vertex.
Hewlett-Packard Company (NYSE:HPQ) launched the Moonshot server, but it has failed to generate the kind of response that the company expected. The company is also continuously losing ground in the PC business, where it is the market leader. For the time being, I recommend a hold on this stock.
Sony Corporation (ADR) (NYSE:SNE)’s new smartphone, and its contract with T-Mobile, is expected to expand its customer base significantly. PS4 provides the company with an opportunity to control the gaming console market. I recommend a buy on this stock.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is conducting trials for its drugs VX-809, Ivacaftor and VX-135. The successful completion of these trials will provide an enormous growth potential to the company. I recommend a buy on the stock.
The article Can These Companies Continue Their Bull Run? originally appeared on Fool.com and is written by Madhu Dube.
Madhu Dube has no position in any stocks mentioned. The Motley Fool recommends Vertex Pharmaceuticals. The Motley Fool owns shares of Microsoft Corporation (NASDAQ:MSFT). Madhu is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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