2 Reasons to Purchase Vertex Pharmaceuticals 2022

Major Points

  • The cystic fibrosis division of Vertex Pharmaceuticals has already generated billions of dollars.
  • However, the company's revenue potential can soon grow even more.

In the first half, the stock started to pick up steam.

Certain stocks have been able to buck the trend even when the market as a whole declines. Some have even flourished, in fact. Vertex Pharmaceuticals is one particular illustration (VRTX 0.08 percent). The share price of the biotech company has increased by nearly 25% so far this year.

2 Reasons to Purchase Vertex Pharmaceuticals 2022, vrtx stock,vertex stock

The situation has completely changed from earlier. Vertex stock fell by more than 30% between October 2020 and October of the previous year. Investors were concerned about the biotech's capacity to diversify beyond the treatment of cystic fibrosis (CF) at the time. Therefore, the company's fortunes have changed. And this might only be the beginning. Here are two justifications for joining the story right now.

  • Prospective growth of the primary business

Investors might object to Vertex's utter reliance on a single treatment field. But it's crucial to remember that Vertex's CF business is still growing strongly. The business dominates the whole market. It anticipates remaining in that position through at least the late 2030s.

Trikafta, a top-selling drug from Vertex, may be able to help 90% of CF patients. Not all patients have yet received it. In fact, the company said during its most recent earnings call that Trikafta may benefit 25,000 additional people in North America, Europe, and Australia.

What is stopping them? Some nations have only lately begun to reimburse for the treatment or haven't done so yet. Additionally, the medicine isn't approved for use in younger age groups just yet, although label expansions may change that in the future. All of this indicates that Trikafta has a bright future.

And now for some even more exciting news. A contender is being created by... guess who? Trikafta's hegemony poses the greatest threat to Trikafta's Vertex. The candidate may be even more effective than Trikafta at this point in phase 3 testing. Because of its once-daily schedule, it would be a practical choice for patients.

Therefore, if you purchase shares of Vertex today, you'll probably profit from expansion in the company's CF business for a very long time.

  • A significant catalyst is coming.

Vertex's expansion into more therapeutic fields is desired by more than just investors. That is another goal of the business. It is working on candidates for a number of conditions, including type 1 diabetes, blood problems, and pain.

I'll concentrate on the company's potential solution for sickle cell illness and beta thalassemia right now. This is so because the candidate up ahead acts as a stimulus. By the end of this year, Vertex and its collaborator, CRISPR Therapeutics, hope to submit their gene-editing candidate for regulatory approval.

In Exa-cel (formerly known as CTX001), a patient's own hematopoietic stem and progenitor cells are edited. The patient is then infused with the altered cells.

Exa-cel prevented 42 of 44 beta thalassemia patients in clinical studies from requiring blood transfusions during the follow-up period of 1.2 months to 37.2 months. And throughout the course of a similar follow-up period, exa-cel prevented all 31 sickle cell patients from experiencing excruciating blood circulation crises.

For two reasons, this potential product is significant. First, there are few available treatments for blood diseases today. So it is obvious that there is a tremendous market for a product that works. Exa-cel is made even better with the following: It is intended to be a single curative procedure. This ought to make it a desirable choice for patients. And it might help Vertex sell a lot of the product.

So what may investors anticipate?

The CF industry already generates billions of dollars in revenue and profit for Vertex every year. It's unlikely that this will end any time soon, given the outlook for that company. And if all goes according to plan with the exa-cel initiative, this possible product might improve a business that is currently successful.

As the exa-cel narrative develops, investors who buy the stock today could profit in the near future. But what's even greater is that they probably will gain with time.


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