Vertex Pharmaceuticals Incorporated

Vertex Pharmaceuticals saw a strong quarter as its CF product revenues increased 22% year over year to $2.2 billion thanks to the steady adoption of Trikafta in the United States and throughout the international market. The company delivered an all-around beat and is making great strides toward reaching all CF patients who qualify for its medications. Their R&D portfolio is also advancing quickly, with initiatives in 5 disease areas already entering or moving through late-stage clinical development and the next wave of innovation about to hit the clinic. Moreover, they continue to pursue external innovation that supports or expedites their internal initiatives by using their solid financial sheet. Vertex’s exa-cel, or CTX001 gene editing program for severe sickle cell disease and beta-thalassemia, is their most sophisticated pipeline program outside of CF. We give Vertex a ‘Hold’ rating with a revised target price.