Vertex Pharmaceuticals (VRTX) AI Stock Analysis

• Market Cap: $123.99B
• Dividend Yield: N/A
• Average Volume (3M): 1.52M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.82
• Revenue Growth: 11.64%
• EPS Growth: -114.72%
• Country: US
• Employees: 6,100
• Sector: Healthcare
• Sector Strength: 74
• Industry: Biotechnology
• EPS (TTM): -2.20
• Shares Outstanding: 257,080,840
• 10 Day Avg. Volume: 1,836,602
• 30 Day Avg. Volume: 1,522,110
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 11.73
• Price to Cash Flow (P/CF): 55.30
• P/FCF Ratio: 54.90
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $499.23
• Price Target Upside: 4.99% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 27

Vertex Pharmaceuticals' overall stock score reflects its strong revenue growth and strategic product launches, tempered by recent profitability and cash flow challenges. While technical indicators are favorable, valuation concerns and operational inefficiencies pose risks. Recent corporate developments, including leadership changes and FDA approval, provide a positive outlook for future growth.

Positive Factors

Financial Performance

Journavx's contribution to the revised price objective has increased, reflecting its potential impact on financial performance.

Pipeline Development

Progress for zimislecel continues with a pivotal trial underway, potentially leading to regulatory submission in 2026.

Product Launch

Scripts available from the first four weeks of Journavx's launch continue to track well, showing strong initial demand.

Negative Factors

Clinical Trials

Vertex announced plans to discontinue its VX-264 program in T1D due to lack of efficacy, impacting investor sentiment negatively.

Product Limitations

The required use of immunosuppressants with zimislecel could limit its uptake compared to expectations for VX-264.

Regulatory Challenges

The majority of practices have yet to implement an official formulary coverage policy, which could take an average of 21 weeks to finalize.

Vertex Pharmaceuticals Business Overview & Revenue Model

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.

How the Company Makes Money

Vertex Pharmaceuticals generates revenue mainly through the sale of its cystic fibrosis medications, which are its flagship products. The company's CF drugs, such as Trikafta, Symdeko, Orkambi, and Kalydeco, are approved in multiple countries, including the United States and the European Union, and are prescribed to a broad patient population. These drugs address different mutations of the CF gene, expanding the number of patients who can benefit from treatment. Besides direct sales, Vertex also engages in strategic partnerships and collaborations to advance its research and development pipeline. The company invests significantly in R&D to discover and develop new treatments for other diseases, which can potentially lead to new revenue streams in the future. Revenue from licensing agreements and milestone payments from partners also contribute to its earnings, though the majority of its income is derived from its commercialized CF therapies.

Vertex Pharmaceuticals Financial Statement Overview

Summary

Vertex Pharmaceuticals has demonstrated strong revenue growth and a robust balance sheet with low leverage. However, recent financials show concerning signs with negative profitability and cash flow challenges, indicating potential operational inefficiencies and increased expenses.

Income Statement

Vertex Pharmaceuticals has shown remarkable revenue growth over the years, with a significant increase from 2019 to 2023. However, the most recent year saw a decline in profitability with a negative EBIT and net income, leading to negative profit margins. This indicates potential operational challenges or increased expenses impacting the bottom line.

Balance Sheet

The company's balance sheet remains robust with a strong equity base and a low debt-to-equity ratio, indicating financial stability and low leverage. The equity ratio is healthy, suggesting sound asset financing through shareholders’ equity. However, the recent increase in liabilities should be monitored for any potential risks.

Cash Flow

Vertex Pharmaceuticals experienced a significant downturn in free cash flow and operating cash flow in the latest year, resulting in negative cash flow figures. This could be a concern if it continues, although historically, the company has maintained strong cash flow generation. The Free Cash Flow to Net Income ratio is negative, reflecting recent profitability challenges.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
11.02B	9.87B	8.93B	7.57B	6.21B
	Gross Profit
9.49B	8.61B	7.85B	6.67B	5.47B
	EBIT
-232.90M	4.31B	4.31B	2.78B	2.86B
	EBITDA
486.30M	4.61B	4.44B	2.92B	3.28B
	Net Income Common Stockholders
-535.60M	3.62B	3.32B	2.34B	2.71B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.12B	11.22B	10.78B	7.52B	6.66B
	Total Assets
22.53B	22.73B	18.15B	13.43B	11.75B
	Total Debt
1.75B	808.40M	561.00M	556.70M	581.48M
	Net Debt
-2.82B	-9.56B	-9.94B	-6.24B	-5.41B
	Total Liabilities
6.12B	5.15B	4.24B	3.33B	3.06B
	Stockholders Equity
16.41B	17.58B	13.91B	10.10B	8.69B
Cash Flow		Free Cash Flow
-790.30M	3.28B	3.93B	2.41B	2.99B
	Operating Cash Flow
-492.60M	3.54B	4.13B	2.64B	3.25B
	Investing Cash Flow
-3.77B	-3.14B	-321.10M	-340.90M	99.39M
	Financing Cash Flow
-1.49B	-562.20M	-67.70M	-1.48B	-505.28M

Vertex Pharmaceuticals Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 475.49
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTX, the sentiment is Negative. The current price of 475.49 is below the 20-day moving average (MA) of 494.47, below the 50-day MA of 483.93, and above the 200-day MA of 470.45, indicating a neutral trend. The MACD of 4.35 indicates Positive momentum. The RSI at 44.78 is Neutral, neither overbought nor oversold. The STOCH value of 21.79 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for VRTX.

Vertex Pharmaceuticals Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REGN	78 Outperform	$63.05B	15.04	15.95%	0.15%	8.27%	10.35%
BMRN	78 Outperform	$11.34B	27.02	8.05%	―	17.35%	151.40%
ARGX	68 Neutral	$31.67B	40.61	17.33%	―	78.01%	―
VRTX	64 Neutral	$123.99B	―	-3.15%	―	11.64%	-114.72%
BNTX	54 Neutral	$22.59B	―	-3.38%	―	-27.64%	-172.62%
ALNY	50 Neutral	$31.64B	―	-414.62%	―	22.97%	38.54%
Sector *	48 Neutral	$6.36B	1.28	-45.04%	2.64%	19.24%	1.69%

Vertex Pharmaceuticals Corporate Events

Vertex Pharmaceuticals Announces Key Leadership Changes

On February 10, 2025, Vertex Pharmaceuticals announced significant leadership changes with the retirement of Stuart A. Arbuckle as Executive Vice President and COO, effective July 1, 2025. Charles F. Wagner, Jr. will assume the role of COO while retaining his CFO responsibilities, and Duncan J. McKechnie will become Chief Commercial Officer. These changes are aligned with Vertex’s strategic initiatives, including the successful launch of new therapies like ALYFTREK and JOURNAVX, which are expected to drive revenue growth and broaden its therapeutic reach. The company reported strong financial performance for 2024, with a 12% increase in product revenue, primarily driven by its cystic fibrosis portfolio, and provided a positive 2025 outlook with guidance for continued growth and diversification.