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Boston, Massachusetts-based Vertex Pharmaceuticals Incorporated (VRTX) is a biotechnology company that focuses on discovering, developing, and commercializing small-molecule drugs targeting serious diseases. With a market cap of $128 billion, Vertex Pharmaceuticals’ operations span the Americas, Europe, Asia Pacific, the Middle East, and internationally.
Companies worth $10 billion or more are generally described as "large-cap stocks," and Vertex Pharmaceuticals fits right into that category, with its market cap exceeding this threshold, reflecting its substantial size, influence, and dominance in the biotech industry. The company provides various products, including Trikafta, Symdeko/Symkevi, Orkambi, and Kalydeco, to treat cystic fibrosis.
Vertex touched its 52-week high of $510.64 on Aug. 1, and it is now trading 2.9% below that peak. VRTX stock has gained 11.9% over the past three months, outpacing the Nasdaq Composite’s ($NASX) 5.8% gains during the same time frame.
Over the longer term, shares of Vertex Pharmaceuticals look even more appealing. VRTX stock rallied 21.9% on a YTD basis and gained 41.2% over the past 52 weeks, outperforming NASX’s returns of 18% in 2024 and 27% gains over the past year.
To confirm the bullish trend, VRTX has been consistently trading above its 200-day moving average and mostly above its 50-day moving average, with slight fluctuations over the past year.
On Jul. 2, Vertex Pharmaceuticals announced the FDA’s acceptance of its next-in-class triple combination treatment for cystic fibrosis. Later, on Jul. 30, the company revealed the FDA’s acceptance of a new drug application for suzetrigine, aimed at treating moderate-to-severe acute pain. These developments highlight the company’s strategic approach to expanding its product portfolio.
In the last reported quarter, Vertex Pharmaceuticals' net product revenue grew 6.1% annually to $2.7 billion in Q2. Additionally, the company underscored its commitment to innovation by allocating $966.6 million to research and development and an additional $4.5 billion to acquired in-process R&D, capturing investor attention.
Vertex Pharmaceuticals’ rival, BioMarin Pharmaceutical Inc. (BMRN), is significantly underperforming VRTX. BMRN dipped 5.4% in 2024 and declined 3.5% over the past 52 weeks, lagging behind VRTX’s double-digit gains.
Among the 30 analysts covering the VRTX stock, the consensus rating is a “Moderate Buy.” The mean price target of $506.11 for VRTX represents a potential upside of 2.1% from the current levels.
On the date of publication, Aditya Sarawgi did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
