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Vertex Pharmaceuticals Inc VRTX

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Stock XNAS Rating as of
$394.28 +0.80 (0.20%)
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As of Delayed Price Post-Trading: $393.41 −0.86
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Company Report

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Vertex: $4.9 Billion Acquisition of Alpine Immune Sciences Expands Kidney-Disease Portfolio

Rachel Elfman

Narrow-moat Vertex announced it will acquire Alpine Immune Sciences, a biotechnology company focused on discovering protein-based immunotherapies, for $4.9 billion in cash. The acquisition will expand Vertex's kidney-disease portfolio, as Alpine's leading molecule is being evaluated as a treatment for IgA nephropathy, or IgAN, a chronic kidney condition that can lead to end-stage renal disease. There are no approved therapies that target the underlying cause of IgAN, which affects about 130,000 people in the US. However, in Phase 2 studies, povetacicept has shown potential best-in-class efficacy in IgAN. We like that povetacicept is on track to enter Phase 3 clinical trials in the second half of 2024.

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Price vs Fair Value

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VRTX is trading at a 15% premium.
Price
$393.48
Fair Value
$928.00
Uncertainty
High
1-Star Price
$667.98
5-Star Price
$619.50
Economic Moat
Zttyct
Capital Allocation
Mcwpgbcg

Bulls Say, Bears Say

Bulls

The firm's CF therapies are poised to dominate the lucrative market for the foreseeable future, based on the disease-modifying potential of the drugs, chronic use by patients, and limited competition.

Bears

Vertex is highly dependent on the success of its cystic fibrosis franchise, and it could fail to diversify if its other pipeline candidates are not successful.

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Trading Information

Previous Close Price
$393.48
Day Range
$391.25–396.98
52-Week Range
$316.43–443.82
Bid/Ask
$391.08 / $394.29
Market Cap
$101.91 Bil
Volume/Avg
1.3 Mil / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
25.90
Price/Sales
10.40
Dividend Yield (Trailing)
—
Dividend Yield (Forward)
—
Total Yield
0.64%

Company Profile

Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease. Additionally, Vertex is evaluating small-molecule inhibitors targeting acute and chronic pain using nonopioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
Sector
Healthcare
Industry
Biotechnology
Stock Style Box
Large Core
Total Number of Employees
5,400
Website
https://www.vrtx.com

Competitors

Valuation

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Metric
VRTX
BMRN
ALNY
Price/Earnings (Normalized)
 25.90108.55—
Price/Book Value
 5.783.42—
Price/Sales
 10.407.139.92
Price/Cash Flow
 27.0034.81194.13
Price/Earnings
VRTX
BMRN
ALNY

Financial Strength

Metric
VRTX
BMRN
ALNY
Quick Ratio
 3.601.452.86
Current Ratio
 3.992.513.08
Interest Coverage
 86.388.78−3.36
Quick Ratio
VRTX
BMRN
ALNY

Profitability

Metric
VRTX
BMRN
ALNY
Return on Assets (Normalized)
 19.46%6.15%−5.60%
Return on Equity (Normalized)
 25.47%8.47%—
Return on Invested Capital (Normalized)
 21.34%6.27%−16.93%
Return on Assets
VRTX
BMRN
ALNY
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