Is Vertex Pharmaceuticals a Buy?
Vertex Pharmaceuticals (NASDAQ: VRTX) has beaten the bear market by far this year: The stock is heading for a 30% gain. But this isn't just a stroke of good luck. Investors are recognizing the biotech's billion-dollar revenue -- and potential for even more on the horizon.
Vertex is the global leader in the cystic fibrosis (CF) treatment market. And it's broadening its therapeutic reach into other areas including blood disorders, pain management, and type 1 diabetes. But has all of this year's enthusiasm made Vertex too expensive today? Or is the stock still a buy?
First, a bit of background on the main CF business. Vertex sells four CF drugs. The newest, Trikafta, is able to help 90% of patients with cystic fibrosis. It's won approvals and reimbursements in various countries since it was first approved back in 2019. But growth should continue as additional countries agree to reimbursements, and regulators approve it for younger age groups. Trikafta generated $5.6 billion in revenue for Vertex last year.
Source Fool.com
