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1. Company Snapshot

1.a. Company Description

Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis.The company markets SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO to treat patients with cystic fibrosis who have specific mutations in their cystic fibrosis transmembrane conductance regulator gene; and TRIKAFTA for the treatment of patients with CF 6 years of age or older who have at least one F508del mutation.Its pipeline includes VX-864 for the treatment of AAT deficiency, which is in Phase 2 clinical trial; VX-147 for the treatment of APOL1-mediated focal segmental glomerulosclerosis, or FSGS, and other serious kidney diseases which is in Phase 2 clinical trial; VX- 880, treatment for Type 1 Diabetes which is in Phase 1/2 clinical trial; VX-548, a NaV1.8 inhibitor for treatments of acute, neuropathic, musculoskeletal pain which is in Phase 2 clinical trial; and CTX001 for the treatment severe SCD and TDT which is in Phase 3 clinical trial.


The company sells its products primarily to specialty pharmacy and specialty distributors in the United States, as well as specialty distributors and retail chains, and hospitals and clinics internationally.It has collaborations with Affinia Therapeutics, Inc.; Arbor Biotechnologies, Inc.; CRISPR Therapeutics AG.; Kymera Therapeutics, Inc.; Mammoth Biosciences, Inc.; Moderna, Inc.; Obsidian Therapeutics, Inc.; and Skyhawk Therapeutics, Inc.; as well as Ribometrix, Inc.; Genomics plc; Merck KGaA; Darmstadt, Germany, and X-Chem, Inc.Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.

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1.b. Last Insights on VRTX

Vertex Pharmaceuticals' recent performance was driven by strong Q3 earnings, beating estimates with $4.8 per share, and revenue growth. The company's Trikafta/Kaftrio demand remained robust, while contributions from newer products like Alyftrek, Casgevy, and Journavx positively impacted results. Analysts have a "Moderate Buy" rating, with 15 buy ratings and 3 strong buy ratings. Institutional investors, including Graphene Investments SAS, increased their stakes, while others, like Ameriprise Financial Inc., reduced theirs. The company refined its 2025 guidance, citing leadership in CF and global momentum for Casgevy.

1.c. Company Highlights

2. Vertex's Q3 2025: A Strong Performance Across the Board

Vertex Pharmaceuticals reported a strong Q3 2025, with revenue growing 11% YoY to $3.08 billion, driven by the continued growth of its cystic fibrosis (CF) franchise and the successful launch of new products, including ALYFTREK, CASGEVY, and JOURNAVX. The company's non-GAAP operating income was $1.38 billion, and non-GAAP earnings per share (EPS) were $4.80, a 10% increase compared to Q3 2024, beating analyst estimates of $4.57. The company's financial performance was highlighted by the strong uptake of its new products, with ALYFTREK generating close to $0.5 billion in sales revenue in the 10 months since its launch.

Publication Date: Nov -05

📋 Highlights
  • $3.08 Billion Revenue: with 11% YoY growth in Q3 2025, driven by CF and new product contributions.
  • ALYFTREK Sales: reached $500 million in 10 months post-launch, achieving 70+ mmol/L sweat chloride reduction in trials.
  • JOURNAVX Momentum: saw 300,000 prescriptions filled by mid-2025, with 150 new reps added to expand U.S. coverage.
  • Povetacicept Trial: enrolled 600 IgAN patients in 15 months, with BLA submission planned for H1 2026 and FDA breakthrough status.
  • Renal Portfolio Expansion: targets 4 kidney diseases, including ADPKD and AMKD, with VX-407 in Phase II and pove’s subcutaneous auto-injector for IgAN.

Pipeline Progress and Key Developments

Vertex is making significant progress in its pipeline, with several key programs advancing in clinical development. The company has completed enrollment in the RAINIER Phase 3 trial for povetacicept, a potential treatment for IgAN, with approximately 600 patients enrolled in 15 months, and has been granted breakthrough therapy designation and rolling review for the BLA. The company is also advancing its kidney portfolio, with a broad pipeline of innovative therapies for 4 kidney diseases, including ADPKD and AMKD.

Commercial Performance and Growth Drivers

The company's commercial performance was strong, with the CF franchise continuing to grow, and the new products, including CASGEVY and JOURNAVX, showing significant uptake. CASGEVY is expected to generate over $100 million in revenue this year, with significant growth expected in 2026. JOURNAVX, a novel non-opioid option for moderate to severe acute pain, is also showing excellent progress, with over 300,000 prescriptions filled across retail and hospital settings as of mid-October.

Valuation and Growth Expectations

With a P/E Ratio of 29.33 and an expected revenue growth rate of 9.6% next year, the valuation appears to be reasonable, with the market expecting continued growth and success from the company's pipeline and commercial products. The company's ROE of 19.62% and ROIC of 16.18% also indicate a strong ability to generate returns on equity and invested capital. The EV/EBITDA ratio of 22.79 is also reasonable, considering the company's growth prospects.

Future Outlook and Priorities

Vertex is well-positioned for future growth, with a strong pipeline and a growing commercial presence. The company is focused on reinvesting in its business to drive innovation and growth, and is also committed to returning value to shareholders through share buybacks. With a strong outlook and a clear focus on its priorities, Vertex is poised for continued success in the years to come.

3. NewsRoom

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WuXi Biologics and Vertex Sign License and Research Service Agreement for T-cell Engager

03:08

Source: prnewswire.com

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Principal Financial Group Inc. Reduces Holdings in Vertex Pharmaceuticals Incorporated $VRTX

Feb -02

Source: defenseworld.net

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Why Vertex Pharmaceuticals (VRTX) Dipped More Than Broader Market Today

Jan -30

Source: zacks.com

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Bank of New York Mellon Corp Sells 31,308 Shares of Vertex Pharmaceuticals Incorporated $VRTX

Jan -29

Source: defenseworld.net

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Federated Hermes Inc. Cuts Holdings in Vertex Pharmaceuticals Incorporated $VRTX

Jan -29

Source: defenseworld.net

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Barlow Wealth Partners Inc. Sells 21,078 Shares of Vertex Pharmaceuticals Incorporated $VRTX

Jan -27

Source: defenseworld.net

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Cabot Wealth Management Inc. Invests $617,000 in Vertex Pharmaceuticals Incorporated $VRTX

Jan -26

Source: defenseworld.net

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Vertex Pharmaceuticals Incorporated $VRTX Shares Sold by Commerzbank Aktiengesellschaft FI

Jan -25

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.40%)

6. Segments

Pharmaceuticals

Expected Growth: 12.4%

Vertex Pharmaceuticals' growth drivers include its dominance in cystic fibrosis treatment and increasing demand for oncology medications

7. Detailed Products

TRIKAFTA

A prescription medicine used for the treatment of cystic fibrosis in patients aged 12 years and older who have at least one F508del mutation in the cystic fibrosis transmembrane conductance regulator (CFTR) gene.

SYMDEKO

A prescription medicine used for the treatment of cystic fibrosis in patients aged 12 years and older who have two copies of the F508del mutation in the cystic fibrosis transmembrane conductance regulator (CFTR) gene.

ORKAMBI

A prescription medicine used for the treatment of cystic fibrosis in patients aged 2 years and older who have two copies of the F508del mutation in the cystic fibrosis transmembrane conductance regulator (CFTR) gene.

KALYDECO

A prescription medicine used for the treatment of cystic fibrosis in patients aged 4 months and older who have one of the following mutations in the cystic fibrosis transmembrane conductance regulator (CFTR) gene: G551D, G1244E, G1349D, G178R, G551S, S1251N, S1255P, S549N, or S549R.

INCIVEK

A prescription medicine used for the treatment of genotype 1 chronic hepatitis C virus (HCV) infection in adults with compensated liver disease, including cirrhosis.

8. Vertex Pharmaceuticals Incorporated's Porter Forces

Forces Ranking

Threat Of Substitutes

Vertex Pharmaceuticals Incorporated has a moderate threat of substitutes due to the presence of alternative treatments for cystic fibrosis and other diseases. However, the company's strong pipeline and innovative products reduce the threat of substitutes.

Bargaining Power Of Customers

Vertex Pharmaceuticals Incorporated has a low bargaining power of customers due to the lack of negotiating power of individual patients and the high demand for its products.

Bargaining Power Of Suppliers

Vertex Pharmaceuticals Incorporated has a low bargaining power of suppliers due to the company's strong relationships with its suppliers and the lack of dependence on a single supplier.

Threat Of New Entrants

Vertex Pharmaceuticals Incorporated has a low threat of new entrants due to the high barriers to entry in the pharmaceutical industry, including the need for significant research and development investments and regulatory approvals.

Intensity Of Rivalry

Vertex Pharmaceuticals Incorporated operates in a highly competitive industry with several established players, leading to a high intensity of rivalry. The company must continuously innovate and invest in research and development to maintain its market position.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.40%
Debt Cost 5.87%
Equity Weight 95.60%
Equity Cost 5.87%
WACC 5.87%
Leverage 4.60%

11. Quality Control: Vertex Pharmaceuticals Incorporated passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
AbbVie

A-Score: 6.7/10

Value: 3.1

Growth: 4.7

Quality: 7.2

Yield: 7.0

Momentum: 9.5

Volatility: 9.0

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McKesson

A-Score: 6.1/10

Value: 5.4

Growth: 8.3

Quality: 4.5

Yield: 0.0

Momentum: 9.5

Volatility: 8.7

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Innoviva

A-Score: 5.5/10

Value: 4.7

Growth: 5.4

Quality: 6.6

Yield: 0.0

Momentum: 8.0

Volatility: 8.0

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Regeneron Pharmaceuticals

A-Score: 4.9/10

Value: 4.0

Growth: 6.4

Quality: 8.8

Yield: 0.0

Momentum: 4.0

Volatility: 6.3

1-Year Total Return ->

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Vertex Pharmaceuticals

A-Score: 4.0/10

Value: 1.5

Growth: 3.8

Quality: 8.9

Yield: 0.0

Momentum: 3.5

Volatility: 6.7

1-Year Total Return ->

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Moderna

A-Score: 3.0/10

Value: 7.7

Growth: 2.3

Quality: 4.8

Yield: 0.0

Momentum: 1.0

Volatility: 2.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

472.01$

Current Price

472.01$

Potential

-0.00%

Expected Cash-Flows