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With a market cap of $124.9 billion, Vertex Pharmaceuticals Incorporated (VRTX) is a global biotechnology company. The Boston, Massachusetts-based company engages in developing and commercializing therapies for treating cystic fibrosis (CF).
Companies valued at $10 billion or more are generally classified as “large-cap” stocks, and Vertex Pharmaceuticals fits this criterion perfectly. VRTX has a robust clinical pipeline of investigational therapies and continues to advance clinical and research programs.
The biopharmaceutical company dipped 6.3% from its 52-week high of $519.88. Over the last three months, VRTX shares have risen 4.8%, outperforming the iShares U.S. Healthcare ETF’s (IYH) marginal rise.
Longer term, VRTX has climbed 20.7% on a YTD basis, surpassing IYH’s 6.4% gain. Additionally, shares of Vertex Pharmaceuticals have surged 14.7% over the past 52 weeks, while the IYH has improved nearly 1.2% in the same period.
VRTX has mostly been trading above its 200-day moving averages since last year. Also, the stock stayed above its 50-day moving average during the period despite some fluctuations.
VRTX announced a reimbursement agreement with NHS England for eligible sickle cell disease (SCD) patients to access the CRISPR/Cas9 gene-edited therapy, CASGEVY, creating a positive sentiment, and its shares jumped 5.3% on Jan. 31.
Shares of Vertex Pharmaceutical fell 3.1% following its Q4 2024 earnings release on Feb. 10. While revenue grew 15.7% year-over-year to $2.9 billion, adjusted EPS of $3.98 fell short of analysts' expectations. Rising R&D and SG&A expenses, which increased by 22.9% to $1.2 billion, raised concerns about profitability as Vertex invests heavily in new therapies and partnerships. Lastly, net income declined by 5.5% year-over-year, partially due to costs from the Alpine acquisition, further weighing on investor sentiment.
In contrast, rival Regeneron Pharmaceuticals, Inc. (REGN) has underperformed VRTX. Shares of REGN have declined 30.4% in the last 52 weeks and 5.2% on a YTD basis.
Despite VRTX’s strong price action over the past year, analysts remain cautiously optimistic about its prospects. Among the 32 analysts covering the stock, there is a consensus rating of “Moderate Buy,” and it is currently trading below the mean price target of $506.50.
On the date of publication, Sohini Mondal 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.
