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Vertex Pharmaceuticals Inc VRTX

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Morningstar’s Analysis

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Vertex Reports Strong Q2 Results; Raising FVE to $266 on Improved Outlook, Shares Remain Undervalued

Rachel Elfman Equity Analyst

Analyst Note

| Rachel Elfman |

Vertex reported solid second-quarter results that outperformed FactSet consensus estimates, driven by continued strong performance of its cystic fibrosis franchise. We’ve raised our fair value estimate to $266 per share from $259 to reflect an improved 2021 outlook based on stronger than expected cystic fibrosis sales. We maintain our narrow moat rating and continue to view shares as undervalued. Vertex is well-supported by lengthy patent protections extending as far as year 2037 and first-mover status in the lucrative cystic fibrosis market, which underpins the basis of our narrow moat rating.

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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 for cystic fibrosis, where Vertex therapies remain the standard of care globally. In addition to its focus on cystic fibrosis, Vertex’s pipeline includes gene-editing therapies such as CTX001 for beta-thalassemia and sickle-cell disease as well as small-molecule medicines targeting diseases associated with alpha-1 antitrypsin deficiency and APOL1-mediated kidney disease. Vertex also has an expanding research pipeline focused on inflammatory diseases, non-opioid treatments for pain, and genetic and cell therapies for type 1 diabetes and rare diseases.

50 Northern Avenue
Boston, MA, 02210
T +1 617 341-6100
Sector Healthcare
Industry Biotechnology
Most Recent Earnings Jun 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Aggressive Growth
Employees 3,400