Summary
Vertex is a $42 bn market cap biotech company that showed unprecedented success over the last several years in the treatment of cystic fibrosis.
We believe that Vertex will eventually be able to treat 90% of cystic fibrosis patients.
However, we question the current trading multiples of the company and think that Vertex stock may be overvalued.
Vertex's Products And Pipeline
Vertex Pharmaceuticals (VRTX) is focused on developing and commercializing therapies for the treatment of cystic fibrosis, or CF, with some early-stage pipeline in other diseases. The three marketed CF products are KALYDECO (ivacaftor), ORKAMBI (lumacaftor in combination with ivacaftor) and SYMDEKO (tezacaftor in combination with ivacaftor). The company claims that those three products are approved to treat approximately 45% (34,000) of the 75,000 CF patients in North America, Europe, and Australia:
Source: Vertex investor presentation
