Vertex Pharmaceuticals (NASDAQ: VRTX) may not be as widely recognized as some other names in the healthcare industry, but it stands out as a top choice for long-term investors seeking a profitable company with strong growth potential. For years, Vertex has been a leader in the cystic fibrosis (CF) therapeutics market.
Vertex holds the distinction of being the only company with approved drugs that address the root cause of cystic fibrosis. Currently, a significant portion of its revenue comes from Trikafta, a drug that treats over 90% of the U.S. cystic fibrosis patient population.
Trikafta’s patent protection extends for well over a decade, and Vertex is actively expanding its pipeline with potential blockbuster drugs that could revolutionize the business in the years to come.
In partnership with CRISPR Therapeutics, Vertex achieved a milestone in late 2023 by securing approval for the first-ever CRISPR-based therapy, Casgevy. This therapy offers a one-time functional cure for sickle cell disease and transfusion-dependent beta thalassemia.
Initially, Casgevy targets specific patient groups in the U.S. and Europe, covering approximately 32,000 individuals. However, globally, millions of people suffer from these blood disorders, presenting a vast market opportunity.
Vertex is also advancing other promising products, with several expected to launch in the coming years. This includes a new triple-combination cystic fibrosis therapy, for which the U.S. Food and Drug Administration has already accepted a new drug application, and suzetrigine, a non-opioid treatment for moderate-to-severe acute and neuropathic pain.
Over the past five years, Vertex has seen its annual revenue grow by more than 130%, with profits increasing by approximately 200%. Free cash flow has also surged by over 130% during this period.
The company’s stock has soared by more than 170% in the last five years, significantly outperforming the S&P 500. With its solid financial foundation, strong market position, and rapid progress in new therapeutic areas, Vertex Pharmaceuticals is well-positioned to continue delivering superior returns to investors in the years ahead.
