With an increasingly dominant position in cystic fibrosis, Vertex’s competitive position is strong, and the stock's sell-off has been unwarranted.
A strong competitive position in the cystic fibrosis market gives the firm a narrow moat.
Gilead and Intercept are both developing drugs aimed at a $10 billion market opportunity in liver-disease treatment, but they present different considerations for biotech investors.
Some high-quality biotech names are trading at substantial discounts, as the market reacts to near-term concerns over pricing and biosimilar competition.
Alexion's diversifying pipeline and focus on attractive rare-disease markets are strengthening its competitive position.
First movers, including Bristol-Myers, and firms that can aggregate a portfolio of immuno-oncology therapies will be positioned well.
Regeneron's moat is widening thanks to recent clinical successes and a productive pipeline; however, investors should wait for a better price before buying.
Recent clinical success in cystic fibrosis positions Vertex as a dominant player in this attractive rare-disease market.
The lack of early success in its lead drug's cancer trial scares the market, but we see a buying opportunity.