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Vertex Pharmaceuticals Inc VRTX

Morningstar Rating
$419.63 −1.01 (0.24%)
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Company Report

Vertex Earnings: Robust Uptake of Trikafta/Kaftrio Drives Sales; Pipeline Makes Significant Progress

Vertex ended 2023 in a strong position thanks to strong uptake of its cystic fibrosis triple combination therapy, Trikafta/Kaftrio, which accounted for 91% total sales in 2023. Product revenue of $9.87 billion represented an 11% increase compared with 2022. In addition, Vertex’s diverse pipeline in disease areas outside of cystic fibrosis is making significant advancements. Vertex is on track to submit two new drug applications to the U.S. Food and Drug Administration by mid-2024 for both VX-548 in acute pain and vanzacaftor triple in cystic fibrosis. We have increased our estimated probabilities of approval for these pipeline candidates to 65% in our base case and raised our fair value estimate to $343 per share from $314. Vertex’s lengthy patent protections extending to 2037 and first-mover status in the lucrative cystic fibrosis market continue to support its narrow economic moat rating while also providing ample cash flow to support the development of its broad pipeline.

Price vs Fair Value

VRTX is trading at a 22% premium.
Price
$419.63
Fair Value
$116.00
Uncertainty
High
1-Star Price
$542.49
5-Star Price
$377.20
Economic Moat
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Capital Allocation
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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
$420.64
Day Range
$414.80424.00
52-Week Range
$283.60443.82
Bid/Ask
$417.70 / $420.60
Market Cap
$108.39 Bil
Volume/Avg
55 / 1.5 Mil

Key Statistics

Price/Earnings (Normalized)
28.27
Price/Sales
11.03
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.60%

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 Growth
Total Number of Employees
5,400

Competitors

Valuation

Metric
VRTX
BMRN
ALNY
Price/Earnings (Normalized)
28.27103.65
Price/Book Value
6.133.30
Price/Sales
11.037.1111.84
Price/Cash Flow
27.9142.011,747.04
Price/Earnings
VRTX
BMRN
ALNY

Financial Strength

Metric
VRTX
BMRN
ALNY
Quick Ratio
3.601.462.86
Current Ratio
3.992.543.08
Interest Coverage
86.388.20−3.36
Quick Ratio
VRTX
BMRN
ALNY

Profitability

Metric
VRTX
BMRN
ALNY
Return on Assets (Normalized)
19.46%5.83%−5.60%
Return on Equity (Normalized)
25.47%8.02%
Return on Invested Capital (Normalized)
21.34%5.94%−16.93%
Return on Assets
VRTX
BMRN
ALNY
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