Cantor Fitzgerald has initiated biotechs Vertex Pharmaceuticals ( NASDAQ: VRTX ) and BioMarin ( NASDAQ: BMRN ) Pharmaceutical with overweight ratings on growth prospects.
The firm has a $365 price target for Vertex ( VRTX ) (~26% upside based on Tuesday's close) and a $110 price target for BioMarin ( BMRN ) (~25% upside).
Of Vertex ( VRTX ), analyst Olivia Brayer said that its core cystic fibrosis business could outperform for another two to three years. She added that the company's mid to late-stage pipeline is diversified and can support growth from 2025-2030.
Among biotechs, Brayer noted, Vertex ( VRTX ) has a "best-in-class growth profile" and the cystic fibrosis franchise should beat 2022 estimates.
Brayer also speaks highly of BioMarin ( BMRN ), saying "it has the best growth profile of any profitable U.S. Biotech company...and there's a clear line-of-sight to a [profit and loss] transformation in 2023+."
She noted the company is at a turning point as it won approval last year of Voxzogo (vosorotide) for achondroplasia and Roctavian (valoctocogene roxaparvovec) for hemophilia A is expected to get a U.S. FDA nod in 2023. The latter received the backing of a European Medicines Agency advisory panel in June.
Brayed added that combined peak sales of Voxzogo and Roctavian combined could exceed $3B.
Check out why Seeking Alpha contributor Denis Buivolov is also bullish on Biomarin ( BMRN ).
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Vertex, BioMarin initiated at overweight at Cantor Fitzgerald on growth prospects