Bill Cara

Cara Community Biotechs: Vertex Pharma

Vertex Pharmaceuticals (NASDAQ: VRTX) reviewed 10-13-2020

Market Cap: 72.0 Billion (USD)   Share Price: $275.85 (USD)

Shares outstanding: 259,637,000

Cash:     $5.45 B (USD) as of 30 June 2020

Long-term Debt: $898 M (USD) as of 30 June 2020

Insiders: Low, 0.14%        Institutional: 1200+ own 98% of float

Website: vrtx.com

Investor Presentations: https://investors.vrtx.com/

President & CEO: Reshma Kewalramani           HQs: Boston, Mass, USA

The company currently has four primary prescription drugs used to treat Cystic Fibrosis (CF):

  • Trikafta – got early FDA approval in Nov 2019
  • Symdeko – $362 M in revenues (all figures for 2019)
  • Orkambi – $316 Million in revenues
  • Kalydeco – $262 Million in revenues

Anticipates 90% growth in reaching CF patients during the 2021-2025 period

Vertex Pharma develops medicines for treating genetic diseases like cystic fibrosis (CF), sickle cell disease, beta-thalassemia, Alpha-1 Antitrypsin Deficiency (AATD) & APOL1-Mediated Kidney Diseases

Bottom line:

  •  Holds a monopoly in treating CF
  •  A huge increase in 2020 revenue will grow fast in 2021 as well

Addendum: Oct 14, 2020

The company reported:

Based on the safety and pharmacokinetic (PK) profile of VX-814 observed to date in a Phase 2 trial in AATD, Vertex has decided to stop dosing in the trial and will discontinue development of VX-814.

https://investors.vrtx.com/news-releases/news-release-details/vertex-provides-update-its-clinical-programs-targeting-alpha-1

The stock, one of my positions, was smashed. However, baz22, who is a knowledgeable Cara Community member, wrote: “Buying at $ 223, and better, now… yes clinical trials are important, but Company current valuations (~$ 300M+) are based on its CF platform… what a gift today is… The liver is the clearinghouse for the human body… with Vertex having a ‘backup’, perhaps in 2 mo  today’s buyers will be a bunch of happy campers.”