Global Healthcare Analyst

Tina Banerjee

Equity Bottom-Up

Vertex Pharmaceuticals / Equity Bottom-Up

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<li>
<a href="https://www.smartkarma.com/entities/vertex-pharmaceuticals-inc" target="_blank" data-smartkarma-citation="entities:4864:1" rel="noopener">Vertex Pharmaceuticals (VRTX US)</a> reported strong Q2 results, with both revenue and adjusted EPS surpassing consensus. Flagship drug, Trikafta reported 51% y/y revenue growth and contributed 86% of revenue.</li>
<li>Vertex estimates more than 25K CF patients that are addressable with its Trikafta are still untreated, thereby providing sustainable growth opportunities. No immediate competition is seen.</li>
<li>The company lifted 2022 product revenue guidance by 2% at the mid-point to $8.6–8.8 billion. R&amp;D costs are also expected to remain elevated as multiple ongoing clinical trials.</li>
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Vertex Pharmaceuticals (VRTX US) reported strong Q2 results, with both revenue and adjusted EPS surpassing consensus. Flagship drug, Trikafta reported 51% y/y revenue growth and contributed 86% of revenue.
Vertex estimates more than 25K CF patients that are addressable with its Trikafta are still untreated, thereby providing sustainable growth opportunities. No immediate competition is seen.
The company lifted 2022 product revenue guidance by 2% at the mid-point to $8.6–8.8 billion. R&amp;D costs are also expected to remain elevated as multiple ongoing clinical trials.


Vertex Pharmaceuticals (VRTX US): Beat-And-Raise Q2 Results Driven by Strong Uptake of Trikafta

Covering IPOs, Healthcare and Technology Stocks

Andrei Zakharov

Algosun Global

Equity Capital Markets

Sana Biotechnology Inc / Equity Capital Markets

A preclinical biotech company <a href="https://www.smartkarma.com/entities/sana-biotechnology-inc" target="_blank" data-smartkarma-citation="entities:31366:1" rel="noopener">Sana Biotechnology Inc (SANA US)</a>  publicly filed for IPO in January. Sana develops in vivo and ex vivo engineering platforms that can repair and control genes in cells or replace any cell in the body. Technologies are being developed in collaboration with leading academic laboratories and industry partners. Combining science and technology, disruptor and innovative biotech unicorn invests in transformative in vivo and ex vivo engineered cell therapies leveraging proprietary gene editing capabilities. Morgan Stanley, Goldman Sachs, J.P. Morgan and BofA Securities are lead underwriters on the upcoming IPO.<a href="https://www.smartkarma.com/entities/sana-biotechnology-inc" target="_blank" data-smartkarma-citation="entities:31366:1" rel="noopener">Sana Biotechnology Inc (SANA US)</a>  was backed by venture capital firms ARCH Venture Partners, Flagship Pioneering, F-Prime Capital, GV, Bezos Expeditions and other institutional investors. <a href="https://www.smartkarma.com/entities/sana-biotechnology-inc" target="_blank" data-smartkarma-citation="entities:31366:1" rel="noopener">Sana Biotechnology Inc (SANA US)</a> raised ~$706M in funding over 2 rounds, according to S-1 company filings and Crunchbase.

A preclinical biotech company Sana Biotechnology Inc (SANA US)  publicly filed for IPO in January. Sana develops in vivo and ex vivo engineering platforms that can repair and control genes in cells or replace any cell in the body. Technologies are being developed in collaboration with leading academic laboratories and industry partners. Combining science and technology, disruptor and innovative biotech unicorn invests in transformative in vivo and ex vivo engineered cell therapies leveraging proprietary gene editing capabilities. Morgan Stanley, Goldman Sachs, J.P. Morgan and BofA Securities are lead underwriters on the upcoming IPO.Sana Biotechnology Inc (SANA US)  was backed by venture capital firms ARCH Venture Partners, Flagship Pioneering, F-Prime Capital, GV, Bezos Expeditions and other institutional investors. Sana Biotechnology Inc (SANA US) raised ~$706M in funding over 2 rounds, according to S-1 company filings and Crunchbase.

Sana Biotechnology IPO. Moving The Genomic Revolution Forward

Pharma/ Biotechnology Investments Specialist, Vasuda Capital Management

Dr. Bhavneesh Sharma, MD, MBA

Pharma/ Biotechnology Investments Specialist

Vasuda Capital Management

We have a Buy rating with price target of $173 (DCF method)=44% upside. The stock also appears to have upside using relative valuation measures like EV/NOPAT. Our price target is higher than the consensus sell-side estimate as the value of future revenue from investments like <a href="https://www.smartkarma.com/entities/8732" target="_blank" data-smartkarma-citation="entities:8732:1">Juno Therapeutics Inc (JUNO US)</a> and <a href="https://www.smartkarma.com/entities/23652" target="_blank" data-smartkarma-citation="entities:23652:1">Crispr Therapeutics Ag (CRSP US)</a> seems to be underestimated by sell-side analysts. We consider the common stock as an excellent large-cap biotechnology investment here. In addition, the company's ROIC (18.87%) is higher than the industry average (15.2%), and is higher than the cost of capital calculated by us (9.7%), thus implying continued value creation by the company in its invested capital.

We have a Buy rating with price target of $173 (DCF method)=44% upside. The stock also appears to have upside using relative valuation measures like EV/NOPAT. Our price target is higher than the consensus sell-side estimate as the value of future revenue from investments like Juno Therapeutics Inc (JUNO US) and Crispr Therapeutics Ag (CRSP US) seems to be underestimated by sell-side analysts. We consider the common stock as an excellent large-cap biotechnology investment here. In addition, the company's ROIC (18.87%) is higher than the industry average (15.2%), and is higher than the cost of capital calculated by us (9.7%), thus implying continued value creation by the company in its invested capital.

We Are Buying This Large Cap Biotechnology Company After Trump's Election Win

Intellia Therapeutics  / Equity Bottom-Up

Summary: We consider <a href="https://www.smartkarma.com/entities/23650" target="_blank" data-smartkarma-citation="entities:23650:1">Intellia Therapeutics Inc (NTLA US)</a> stock undervalued at current price level. Out first price target is US$32 (sum-of-the parts, risk-adjusted NPV method), which could mean more than 100% upside (2-3 years time-frame).CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) has been in the news recently after being called the discovery of the century. CRISPR is a part of the acquired immune system that protects bacteria and other organisms against attacks by…

 Summary: We consider Intellia Therapeutics Inc (NTLA US) stock undervalued at current price level. Out first price target is US$32 (sum-of-the parts, risk-adjusted NPV method), which could mean more than 100% upside (2-3 years time-frame).CRISPR (Clustered Regularly Interspaced Short Palindromic Repeats) has been in the news recently after being called the discovery of the century. CRISPR is a part of the acquired immune system that protects bacteria and other organisms against attacks by…

CRISPR Gene Editing Technology Could Change the World, Part I: Intellia Therapeutics

United States

CRISPR Therapeutics AG is a bio-technology company. The Company researches, develops, and manufactures biological transformative gene-based medicines and other related products. CRISPR Therapeutics operates in Switzerland.

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CRISPR Therapeutics AG (CRSP US)

Vertex Pharmaceuticals (VRTX US): Beat-And-Raise Q2 Results Driven by Strong Uptake of Trikafta

Vertex’s strong Q2 results and 2022 guidance raise enhance our conviction on its CF leadership position. The company is also advancing its pipeline...

Tina Banerjee

Sana Biotechnology IPO. Moving The Genomic Revolution Forward

We expect strong investor demand for upcoming IPO of Sana Biotechnology, disruptor in novel engineered cell therapies to treat cancer, diabetes,...

Andrei Zakharov

We Are Buying This Large Cap Biotechnology Company After Trump's Election Win

We have a Buy rating with price target of $173 (DCF method)=44% upside. The stock also appears to have upside using relative valuation measures...

Dr. Bhavneesh Sharma, MD, MBA

CRISPR Gene Editing Technology Could Change the World, Part I: Intellia Therapeutics

Summary: We consider Intellia Therapeutics Inc (NTLA US) stock undervalued at current price level. Out first price target is US$32 (sum-of-the...

Dr. Bhavneesh Sharma, MD, MBA

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