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Vertex Pharmaceuticals Inc VRTX

Morningstar Rating
$351.16 −3.65 (1.03%)
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Company Report

Vertex Earnings: Strong Demand for Trikafta/Kaftrio Drives Sales; Pipeline Continues to Make Progress

Vertex reported third-quarter results highlighted by strong uptake of its cystic fibrosis triple combination therapy, Trikafta/Kaftrio, in the United States and internationally. Quarterly product revenue of $2.48 billion represented a 6% increase from the prior-year period. Vertex’s results are tracking our expectations, and we maintain our fair value estimate of $314 per share.

Price vs Fair Value

VRTX is trading at a 12% premium.
Price
$351.15
Fair Value
$748.00
Uncertainty
High
1-Star Price
$496.30
5-Star Price
$777.80
Economic Moat
Brrzh
Capital Allocation
Mdxwlkr

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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News

Trading Information

Previous Close Price
$354.81
Day Range
$350.23356.71
52-Week Range
$282.21387.42
Bid/Ask
$348.56 / $353.00
Market Cap
$90.49 Bil
Volume/Avg
1.1 Mil / 1.2 Mil

Key Statistics

Price/Earnings (Normalized)
23.76
Price/Sales
9.47
Dividend Yield
Dividend Yield (Forward)
Total Yield
0.56%

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 is diversifying its pipeline through gene-editing therapies such as CTX001 for beta thalassemia and sickle-cell disease, 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 Growth
Total Number of Employees
4,800

Competitors

Valuation

Metric
VRTX
BMRN
SGEN
Price/Earnings (Normalized)
23.76111.38
Price/Book Value
5.483.5515.73
Price/Sales
9.477.6417.31
Price/Cash Flow
23.4545.14
Price/Earnings
VRTX
BMRN
SGEN

Financial Strength

Metric
VRTX
BMRN
SGEN
Quick Ratio
3.741.461.96
Current Ratio
4.082.542.67
Interest Coverage
84.998.20
Quick Ratio
VRTX
BMRN
SGEN

Profitability

Metric
VRTX
BMRN
SGEN
Return on Assets (Normalized)
20.07%5.83%−13.05%
Return on Equity (Normalized)
26.24%8.02%−17.35%
Return on Invested Capital (Normalized)
22.40%5.94%−16.86%
Return on Assets
VRTX
BMRN
SGEN

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ALNY
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BMRN
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