Vertex maintained buy by Merrill

Vertex Pharmaceuticals Inc. remained at buy by Merrill Lynch analyst Hari Sambasivam as the new price objective increased to $50.00 from $40.00, based on a P/E multiple of 25 times to 30 times and the 2012 estimated earnings per share of $4.85 discounted to 2008, which gives a valuation range of $50.00 to $60.00. Merrill chose the lower end of this range. Vertex also reported revenues of $53.3 million, total expenses of $115.4 million, and pro-forma EPS of negative $0.51 per share for the third quarter, compared to Merrill's estimates of $70.0 million, $128.3 million and negative $0.44 per share, respectively. Shares of the Cambridge, Mass.-based biotechnology company were up $6.09, or 17.62%, at $40.66. (Nasdaq: VRTX)

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