Vertex Pharmaceuticals Incorporated
- Open
- 484.32
- Day high
- 496.69
- Day low
- 481.98
- Prev close
- 486.03
- Volume
- 1.5M
- Mkt cap
- $123.3B
- P/E (TTM)
- 28.6
- EPS (TTM)
- $17.01
- P/B
- 6.4
- P/S
- 10.1
- Yield
- —
- Per share
- —
- ▼Insiders net selling -$10.6M over the last 3 months (0 open-market buys, 13 sales)
- 🏛Institutions accumulating (13F)
Vertex Pharmaceuticals Incorporated (VRTX) is a Healthcare company listed on NASDAQ. The stock is up 6% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 13 sales (SEC Form 4).
Vertex Pharmaceuticals Incorporated (VRTX) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 8 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
VRTX earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| May 4, 2026 | $4.24 | $4.47 | +5.4% | $3.0B | -0.2% |
| Feb 12, 2026 | $5.11 | $5.03 | -1.6% | $3.2B | +1.3% |
| Aug 1, 2024 | $-11.63 | $-12.83 | -10.3% | $2.6B | -1.1% |
| Aug 1, 2023 | $3.88 | $3.89 | +0.3% | $2.5B | +3.0% |
| May 1, 2023 | $3.00 | $3.05 | +1.7% | $2.4B | +1.6% |
| Feb 7, 2023 | $3.51 | $3.76 | +7.1% | $2.3B | -0.1% |
| Oct 27, 2022 | $3.64 | $4.01 | +10.2% | $2.3B | +4.7% |
| Aug 4, 2022 | $3.48 | $3.60 | +3.4% | $2.2B | +3.0% |
| May 5, 2022 | $3.49 | $3.52 | +0.9% | $2.1B | +1.1% |
| Jan 26, 2022 | $3.30 | $3.37 | +2.1% | $2.1B | +3.5% |
| Nov 2, 2021 | $3.08 | $3.56 | +15.6% | $2.0B | +7.5% |
| Jul 29, 2021 | $2.69 | $3.11 | +15.6% | $1.8B | +4.4% |
VRTX insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 7, 2026 | McKechnie Duncanofficer: EVP, Chief Commercial Officer | Sell | 1,541 | $519.00 |
| Jul 7, 2026 | Tatsis Ouraniaofficer: EVP, Chief Reg. & Quality Off. | Sell | 1,500 | $524.99 |
| Jul 6, 2026 | Liu Joyofficer: EVP and Chief Legal Officer | Sell | 828 | $502.71 |
| Jun 30, 2026 | Bozic Carmenofficer: EVP and CMO | Sell | 596 | $482.50 |
| Jun 23, 2026 | Bozic Carmenofficer: EVP and CMO | Sell | 1,020 | $462.17 |
| Jun 17, 2026 | Bozic Carmenofficer: EVP and CMO | Sell | 4,062 | $450.00 |
| Jun 9, 2026 | Bozic Carmenofficer: EVP and CMO | Sell | 1,745 | $450.00 |
| Jun 2, 2026 | Bozic Carmenofficer: EVP and CMO | Sell | 1,974 | $450.00 |
| May 19, 2026 | Bozic Carmenofficer: EVP and CMO | Sell | 1,354 | $453.45 |
| May 19, 2026 | Bunnage Mark E.officer: EVP, Chief Scientific Officer | Sell | 33 | $453.45 |
| May 14, 2026 | Bozic Carmenofficer: EVP and CMO | Sell | 6,988 | $450.00 |
| May 5, 2026 | MCKENZIE DIANAdirector | Grant | 796 | — |
| May 5, 2026 | Bhatia Sangeeta N.director | Sell | 318 | $423.73 |
| May 5, 2026 | Schneider Jenniferdirector | Grant | 472 | — |
| May 5, 2026 | Garber Alan Mdirector | Grant | 472 | — |
Source: VRTX SEC Form 4 filings, latest Jul 7, 2026. For informational purposes only — not investment advice.
See the full VRTX insider & 13F page →Vertex Pharmaceuticals Incorporated company profile
Overview
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a Boston-based biotechnology company founded in 1989 and publicly traded since 1991. The company has evolved from a research-focused biotech startup into a leading commercial biopharmaceutical company, primarily known for developing breakthrough treatments for cystic fibrosis. Over its three-decade history, Vertex has transformed from having no approved products to generating over $11 billion in annual revenue, establishing itself as a dominant force in rare disease therapeutics with an expanding pipeline across multiple therapeutic areas including pain management, diabetes, kidney diseases, and blood disorders.
Business
Vertex Pharmaceuticals operates in the biotechnology sector, focusing on developing and commercializing innovative therapies for serious diseases with significant unmet medical needs. The company's business spans two primary areas: established commercial products and an expanding clinical pipeline. The company's core business revolves around cystic fibrosis (CF) therapeutics, which represents approximately 95% of total revenue. Cystic fibrosis is a genetic disorder that affects approximately 75,000 people worldwide, causing thick, sticky mucus to build up in the lungs and digestive system, leading to serious breathing and digestive problems. Vertex has developed a portfolio of CFTR modulators - medicines that target the underlying cause of CF by helping the defective CFTR protein function better. The company's CF franchise includes four approved medicines: KALYDECO (for patients with specific gating mutations), ORKAMBI (for patients with two copies of the F508del mutation), SYMDEKO/SYMKEVI (for patients with one F508del mutation), and TRIKAFTA (for patients with at least one F508del mutation, covering about 90% of CF patients). Most recently, the company launched ALYFTREK (vanzacaftor triple), a fifth CF medicine with expanded mutation coverage and once-daily dosing. The company's second major commercial product is CASGEVY, a groundbreaking gene-editing therapy developed in collaboration with CRISPR Therapeutics. CASGEVY uses CRISPR/Cas9 technology to edit patients' own cells to produce functional hemoglobin, offering a potential functional cure for sickle cell disease and beta-thalassemia. This represents the first approved CRISPR-based therapy and targets approximately 32,000 severe patients in the US and Europe. Vertex has also recently launched JOURNAVX (suzetrigine), the first oral non-opioid medication specifically designed to treat acute pain by selectively inhibiting the NaV1.8 sodium channel. This addresses a significant unmet need in pain management, targeting the approximately 80 million Americans who experience acute pain annually. The company maintains an extensive clinical pipeline across multiple therapeutic areas, with four programs currently in pivotal Phase 3 development: zimislecel for type 1 diabetes, inaxaplin for APOL1-mediated kidney disease, povetacicept for IgA nephropathy, and additional pain programs. This diversification strategy aims to leverage Vertex's expertise in rare diseases while expanding into larger patient populations.
Revenue model
Vertex generates revenue primarily through direct product sales to specialty pharmacies, specialty distributors, hospitals, and clinics. The company operates a premium pricing model typical of rare disease therapeutics, with its CF medicines commanding high annual treatment costs often exceeding $300,000 per patient. This pricing is supported by the significant clinical benefit these medicines provide to patients with life-threatening conditions and limited treatment alternatives. The company's customers are primarily specialty pharmacies and distributors in the United States, along with specialty distributors, retail chains, hospitals, and clinics internationally. For gene therapy products like CASGEVY, the company works directly with authorized treatment centers that have the specialized infrastructure required for cell collection, processing, and infusion procedures. Revenue growth drivers include expanding the eligible patient population through new approvals in younger age groups, geographic expansion into new markets, and launching new products that address previously untreatable patient populations. The CF franchise benefits from high patient retention rates and lifetime treatment duration, creating a stable, recurring revenue base. Several factors influence Vertex's margins and profitability. Positive margin drivers include the company's pricing power in rare diseases with limited competition, operational leverage as fixed costs are spread across growing revenues, and lower royalty burdens on newer products like ALYFTREK compared to older medicines. The company also benefits from manufacturing efficiencies and economies of scale as production volumes increase. Margin pressures come from substantial R&D investments, which typically represent 15-20% of revenues as the company advances multiple clinical programs simultaneously. International expansion can temporarily pressure margins due to different pricing dynamics and market access challenges in various countries. Additionally, the launch of complex therapies like CASGEVY requires significant commercial infrastructure investments, including specialized treatment center support and patient access programs. Competitive pressures, while currently limited, could emerge as other companies develop competing therapies, potentially affecting pricing power over time.
Competitive moat
Vertex possesses a strong competitive moat built primarily on scientific expertise, regulatory barriers, and market positioning advantages. The company's most significant moat lies in its deep expertise in CFTR biology and small molecule drug design, accumulated over decades of research. This knowledge creates substantial barriers for competitors attempting to develop superior CF therapies, as evidenced by the lack of meaningful competition in the CFTR modulator space despite the large market opportunity. The company benefits from high switching costs in its core CF business, as patients who achieve clinical stability on Vertex's medicines are reluctant to switch to unproven alternatives. The chronic, progressive nature of CF means that treatment interruption carries significant health risks, creating strong physician and patient loyalty to effective therapies. Regulatory barriers provide additional protection, as developing competing CF therapies requires extensive clinical trials spanning multiple years and hundreds of millions in investment. The FDA's requirement for meaningful clinical endpoints in CF, combined with the availability of effective existing treatments, makes it challenging for competitors to design approvable trials. However, Vertex's moat faces several potential challenges. The company's expansion into larger therapeutic areas like pain management and diabetes brings it into competition with well-established pharmaceutical giants with greater resources and commercial reach. In these markets, Vertex lacks the specialized expertise and entrenched relationships that protect its CF franchise. Emerging competitive threats include gene therapy approaches for CF that could potentially provide one-time cures rather than chronic treatments, though these remain in early development stages. Additionally, as Vertex's key CF patents expire over the next decade, generic competition could emerge, though the complexity of manufacturing these medicines provides some protection. The company's newer programs in gene editing and pain management face more direct competition from companies like Bluebird Bio, Editas Medicine, and established pain management companies, suggesting that Vertex's moat may be narrower in these areas compared to its dominant CF franchise.
Risks & safety
Vertex demonstrates a strong margin of safety with robust financial metrics and minimal solvency risk, though trading at premium valuations typical of successful biotech companies. **Financial Strength:** - Cash and short-term investments: $4.67 billion (Q1 2025) - Current ratio: 2.65, indicating strong liquidity - Debt-to-equity ratio: 0.10, representing minimal financial leverage - Free cash flow: $778 million (Q1 2025), demonstrating strong cash generation - No significant solvency concerns given strong balance sheet and cash generation **Valuation Metrics:** - Price-to-earnings ratio: 48.2 (Q1 2025), reflecting premium growth expectations - EV/EBITDA: 38.9, indicating high valuation relative to current earnings - Price-to-book ratio: 7.6, typical for asset-light biotech companies - Revenue multiple: Approximately 10x trailing twelve-month revenue **Other Considerations:** - Patent cliff risks for core CF franchise over next decade - Substantial R&D investments creating near-term earnings volatility - Regulatory approval risks for pipeline programs - Execution risks in new therapeutic areas outside core CF expertise
Recent development
Over the past few years, Vertex has executed a significant strategic transformation from a single-franchise CF company to a diversified biotechnology company with multiple commercial products and a broad pipeline. The company's most notable achievement was the successful launch of CASGEVY, the world's first approved CRISPR-based gene therapy, marking Vertex's entry into the gene editing space and establishing proof-of-concept for potentially curative one-time treatments. The company has systematically expanded its CF franchise with the launch of ALYFTREK, a next-generation triple combination therapy offering once-daily dosing and expanded mutation coverage. This launch represents both a defensive move to protect market share and an offensive strategy to capture previously untreatable patient populations. Vertex's most significant strategic pivot has been its expansion into pain management with the launch of JOURNAVX, representing the company's first major move outside rare diseases into a large specialty market. This launch demonstrates management's confidence in applying Vertex's drug development expertise to address broader patient populations while maintaining focus on areas with significant unmet medical need. The company has also made substantial investments in building pipeline diversity, advancing four programs into Phase 3 development across diabetes, kidney diseases, and additional pain indications. This includes zimislecel for type 1 diabetes, which could potentially address the underlying cause of the disease rather than just managing symptoms, and povetacicept for kidney diseases, targeting conditions with limited treatment options. Recent organizational changes include a planned leadership transition with Stuart Arbuckle's retirement and the promotion of Charlie Wagner to COO and Duncan McKechnie to Chief Commercial Officer, reflecting the company's evolution from a single-product company to a multi-franchise organization requiring more sophisticated commercial capabilities. The company has also strengthened its balance sheet and capital allocation strategy, maintaining substantial cash reserves while investing heavily in R&D and preparing for multiple simultaneous product launches across different therapeutic areas.
VRTX company profile · for informational purposes only — not investment advice.
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