Narrow-Moat Vertex's Strong CF Cash Flows Support Expansion Into Endocrinology Via Crinetics

Vertex Pharmaceuticals was known for discovering blockbuster hepatitis C drug Incivek, which is now overshadowed by the company's robust cystic fibrosis franchise. Vertex's approved cystic fibrosis drugs—Kalydeco, Orkambi, Symdeko, Trikafta, and Alyftrek—make the firm eligible to treat about 90% of the CF population. We expect Vertex to maintain its dominant position in CF, given the strong efficacy of its therapies, lengthy patents, and lack of competition, while developing pipeline candidates in other indications to spur growth.