Vertex: Continuing To Dominate In CF, But What About Its Pain Pipeline?

Robert J. Lake
458 Followers
(29min)

Summary

  • Vertex Pharmaceuticals Incorporated remains a buy despite recent share price weakness, supported by its dominant cystic fibrosis franchise and robust late-stage pipeline.
  • Alyftrek's launch extends Vertex's CF leadership, patent life, and addressable market, while Casgevy and Journavx add new growth avenues.
  • VRTX valuation is justified by stable CF cash flows, a strong balance sheet, proven management, and a diversified pipeline with multiple near-term catalysts.
  • Regulatory risks and pipeline competition exist, but I see these as short-term headwinds; technical and fundamental analysis both support a bullish outlook.

Woman in pain holding shoulder on bridge during golden hour

Vladimir Vladimirov/E+ via Getty Images

Company Background

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was founded in 1989 and is based in Boston, MA. It is one of the world's leading biotechnology companies in the S&P 100 and has an approximate market cap

This article was written by

458 Followers
I have been investing in the stock market since I was 17 years old, and over the 25+ years since I have learned the joy of compounding, the value of dividend reinvesting, and the principle that patient investing through good times and bad brings the greatest rewards. I believe the key to creating wealth is the slow accumulation of high quality assets, and the key to enjoying the process of investing is to mix this steady approach with some high risk/high reward opportunities, underappreciated turnaround plays, and transformative technologies. I invest with integrity, only putting my money into companies and industries that aim to make the world a better place.I would consider myself an amateur investor, entirely self-taught with no formal education in investing or business, but smart at figuring out who is worth listening to. I read widely and embrace the notion that my own growth comes from learning from others. In my other life, I teach at the college/university level. I have a PhD from Brunel University and am an accomplished academic writer and editor.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of VRTX, CRSP either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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