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Vertex Pharmaceuticals Incorporated (VRTX), based in Boston, Massachusetts, is a prominent biotech firm specializing in the discovery, development, and commercialization of innovative small-molecule drugs targeting serious diseases. Its core focus includes genetic disorders such as cystic fibrosis (CF) and sickle cell disease.
The company operates globally with extensive R&D and commercial sites, driving advancements through substantial investment in research, a strong manufacturing base, and efficient worldwide distribution to deliver transformative therapies to patients. Vertex has a market capitalization of $109.65 billion, which classifies it as a “large-cap” stock.
Vertex’s stock reached a 52-week high of $519.68 back in March, but is down 16.8% from that level. Based on positive investor sentiment surrounding the stock, likely driven by Vertex’s robust pipeline of genetic therapies, it has surged 11.6% over the past three months. On the other hand, the Nasdaq Composite ($NASX) index gained 7.8% over the same period.
However, over the longer term, the stock’s performance has been lackluster. Over the past 52 weeks, Vertex’s shares have dropped 7.5%, while it has been down marginally over the past six months. On the other hand, the Nasdaq Composite has gained 21.1% and 23.9% over the same periods, respectively. Vertex has been trading below its 200-day moving average since early August, but trading above its 50-day moving average since early October.
On Nov. 3, Vertex reported its third-quarter financials for fiscal 2025. The company’s revenues increased by 11% year-over-year (YOY) to $3.08 billion, exceeding the $3.04 billion expected by Wall Street analysts. This was primarily based on a 2.7% YOY increase in sales of its flagship CF drug, Trikafta/Kaftrio. The topline growth was also significantly helped by the addition of $247 million in sales from the newly approved CF drug Alyftrek.
Vertex’s non-GAAP EPS also increased by 9.6% annually to $4.80, higher than the expected $4.55. Despite these solid results, Vertex’s stock dropped 1% intraday on Nov. 4. The company also refined the full-year revenue outlook from a range of $11.85 billion - $12 billion to a range of $11.90 billion - $12 billion.
We compare Vertex’s performance with that of another biotech giant, Alnylam Pharmaceuticals, Inc. (ALNY), which has gained 75.7% over the past 52 weeks and 53.5% over the past six months. Therefore, Vertex has been the clear underperformer over these periods.
Wall Street analysts are moderately bullish on Vertex’s stock. The stock has a consensus rating of “Moderate Buy” from the 33 analysts covering it. The mean price target of $489.20 indicates a 13.2% upside compared to current levels. The Street-high price target of $604 indicates a 39.8% upside.
