Vertex Pharmaceuticals (NASDAQ: VRTX) beat the S&P 500 for three, five, and 10 years. It's no coincidence that the drugmaker has been financially successful and inventive. It's not too late to invest in Vertex despite its recent market-beating results. The company's business is still strong, making the stock a "forever" pick. Find out more.
Experience matters in most fields. The biotech industry follows suit. Drugmakers must comply with many regulatory standards, so it's not simply hard to traverse. Companies need experienced researchers and scientists who have developed innovative treatments. Vertex has a huge advantage over its competitors since it has developed medicines for cystic fibrosis (CF), a rare lung illness
Vertex sells the only drugs that treat this disease's causes, and it's still innovating. Its next-generation CF medication, which should outperform Trikafta, showed good results in a phase 3 clinical trial earlier this year. Meanwhile, rivals haven't cracked the code. Many have challenged Vertex in this area without success. Some attempt. Mid-cap firm Krystal Biotech is developing a gene treatment for CF that could treat all patients.
Not even Vertex Pharmaceuticals has done that. Trikafta, its flagship medicine, treats 90% of CF patients. Could Krystal Biotech rival Vertex? Maybe, but history suggests not. Vertex Pharmaceuticals is also developing therapies for ineligible patients. Importantly, the biotech is extending outside CF.
The wheel turns. How often does a biotech monopolize illness treatments for over 10 years? Vertex Pharmaceuticals doesn't expect it again because it's rare. The corporation is broadening its search. Portfolio tackles various therapeutic areas. Vertex received approval for CRISPR Therapeutics' gene-editing medication Casgevy for two rare blood illnesses last year.
That was the company's first non-CF approval in years. VX548, a possible acute and neuropathic pain therapy, showed positive phase 3 results in January. More biotech jewels may be in development. Inaxaplin may treat APOL1-mediated renal dysfunction. Late-stage testing is underway for this contender. No drugs treat APOL1-mediated renal disease's causes.
Its global patient population exceeds 100,000—8,000 more than the biotech targets' CF patients. Could Vertex replicate this success? Maybe, but it's targeting multiple comparable candidates to reduce the danger of one failing.
Importantly, the biotech has fostered innovation. It has a strong pipeline, and Casgevy should be a hit. Vertex Pharmaceuticals has much to boast about. Buyers of the company's shares today should expect high long-term gains.
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