Vertex Pharmaceuticals Inc (VRTX) Quote - XNAS | Morningstar

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Narrow-Moat Vertex Reports Strong Q1 Results; Maintaining $293 FVE, Shares Undervalued

Equity Analyst Rachel Elfman

Rachel Elfman Equity Analyst

Analyst Note

| Rachel Elfman | May 8, 2022

Vertex reported strong first-quarter results highlighted by nearly $2.1 billion in product revenue, representing a 22% increase from the prior year period. We’ve updated our valuation model, and we maintain our fair value estimate of $293 per share and continue to view shares as undervalued. The stock is currently trading in 4-star territory about 14% below our fair value estimate. We maintain our narrow economic moat and positive trend ratings, which are supported by intangible assets and its diversified pipeline spanning six disease areas.

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Vertex Pharmaceuticals Inc's Company Profile

Business Description

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. In addition to its focus on cystic fibrosis, 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 non-opioid 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.

Contact

50 Northern Avenue
Boston, MA, 02210

T +1 617 341-6100

investorinfo@vrtx.com

Sector Healthcare

Industry Biotechnology

Most Recent Earnings Mar 31, 2022

Fiscal Year End Dec 31, 2022

Stock Type Aggressive Growth

Employees 3,900

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