Entering text into the input field will update the search result below

Is Vertex One Of The Cleanest Growth Stories In Biotech?

Feb. 11, 2019 6:11 PM ETVRTX1 Comment
TipRanks profile picture


  • Vertex Pharmaceuticals showed a 40% revenue increase from a year ago.
  • A larger patient base boosted profits on the company's three approved CF medications.
  • VRTX share prices have doubled in the last two years.

Vertex Pharmaceuticals (VRTX)is making headlines for all the right reasons. The Boston-based company reported Q4 FY2018 earnings on February 5, and the results were a blockbuster for the company.

Start at the beginning: Vertex is a mid-size drug developer, working on treatments for cystic fibrosis. There is no cure for CF, and the disease is progressive. Treatments until now have focused on ameliorating symptoms; Vertex’ new drugs have taken a different approach and targeted the underlying cause of the disease.

The three medications Vertex has on the market – Symdeko, Kalydeco, and Orkambi – work by modifying the incorrect protein expression in the lungs resulting from the underlying genetic mutation. This novel approach has let Vertex carve out an exclusive niche in the biotech industry.

So, what else went right for Vertex in 2018?

Widening the Patient Base…

This past year, Vertex saw approval of Symdeko in the US as well as the first full year of sales since Kalydeco’s approval. This significantly increased the number of cystic fibrosis patients receiving the company’s approved medications. 2018 saw, according to the company’s Q4 report, “…the rapid uptake of SYMDEKO in the U.S. and the full year impact of KALYDECO label expansions.”

More important than just the increase in the patient base, is the potential changing demographic of the patient base. At the end of 2018 and the beginning of 2019, both Kalydeco and Orkambi were approved for use in children as young as 2 years. Earlier intervention in the disease promises greater benefits from the treatment and a longer, healthier life for patients, while also increasing the potential lifetime use of Vertex products.

…Led to Increased Revenues…

Vertex’ fourth quarter numbers reflected the wider patient base and distribution of the company’s CF treatments. Product revenues for Q4 reached $868 million, and the company’s outlook going

This article was written by

TipRanks profile picture
TipRanks is the most comprehensive data set of sell side analysts, hedge fund managers, financial bloggers, and corporate insiders. We rank financial experts based on measured performance and the accuracy of their predictions. We aim to make Wall Street more transparent by highlighting which experts can consistently outperform the market, allowing investors to make the most informed investment decisions.

Analyst’s Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Recommended For You

To ensure this doesn’t happen in the future, please enable Javascript and cookies in your browser.
Is this happening to you frequently? Please report it on our feedback forum.
If you have an ad-blocker enabled you may be blocked from proceeding. Please disable your ad-blocker and refresh.