Vertex Pharmaceuticals shares rebound after strong data readouts

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In the past year, shares of Vertex Pharmaceuticals($NASDAQ:VRTX) have rebounded after strong data readouts from multiple programs. A year ago, the company’s shares sold off after setbacks in the pipeline brought into question whether the company could expand beyond their extraordinary CF franchise. However, since then, data readouts from multiple programs have significantly de-risked the pipeline and Vertex is now well-positioned to expand their reach.

Stock Price

On Monday, shares of Vertex Pharmaceuticals opened at $284.3 and closed at $285.1, down 1.6% from the previous day’s close of $289.7. The stock rebounded after the company released strong data from two clinical trials of its cystic fibrosis treatments. In the first trial, the company’s drug ivacaftor improved lung function in patients with the most common type of cystic fibrosis. In the second trial, a combination of ivacaftor and another drug, tezacaftor, improved lung function in patients with a different type of cystic fibrosis.

VI Analysis

Company’s fundamentals reflect its long term potential, below analysis on VERTEX PHARMACEUTICALS are made simple by VI app. VERTEX PHARMACEUTICALS is a high risk investment in terms of financial and business aspects. The company’s financials are not strong, with a high debt to equity ratio and negative cash flow from operations. Additionally, the company is facing various legal challenges, including an antitrust lawsuit. These factors indicate that the company may have difficulty sustaining its current business model. As such, investors should exercise caution when considering an investment in VERTEX PHARMACEUTICALS.

Summary

Investors are clearly optimistic about the company’s prospects after it reported positive data from two separate clinical trials. With two promising new drugs in its pipeline, Vertex is well-positioned to continue growing its business. Investors who are looking for a healthcare stock with upside potential should consider buying Vertex Pharmaceuticals.