Vertex Stock Fair Value Calculator – FDA Staff Warns of Potential Safety Risks with Vertex/CRISPR’s Gene Therapy
October 31, 2023
☀️Trending News
The US Food and Drug Administration (FDA) has recently warned of potential safety risks associated with Vertex ($NASDAQ:VERX)/CRISPR’s gene therapy. In particular, they have stated that the safety risks of this technology are not yet fully understood. This is especially concerning given that this therapy is relatively new, and has already been used to treat rare and severe diseases in both adults and children. Vertex Pharmaceuticals Incorporated is a biotechnology company based in Boston, Massachusetts. The company specializes in the development of transformative therapies, such as gene therapies for treating rare diseases.
Vertex’s CRISPR-based gene therapy is an example of their cutting-edge approach to treating serious diseases. It involves the insertion of genes into cells through a specialized protein delivery system, with the aim of correcting certain genetic defects or replacing missing genes. Despite its promise, the safety risks associated with this technology have raised alarms among FDA staff.
Market Price
On Monday, the Food and Drug Administration (FDA) staff released a report warning of potential safety risks associated with Vertex and CRISPR’s gene therapy. This news caused a slight fluctuation in the stock of Vertex, with shares opening at $22.9 and closing at $22.8, up by 0.4% from previous closing price of $22.8. The FDA staff report noted that gene therapy carries a number of potential risks, including potential cancer-causing effects as well as other long-term risks.
The report also recommended further research and investigations into the safety of gene therapies before they can be approved for use in humans. This news has caused some concern among investors, as the potential safety risks associated with gene therapies could lead to a decrease in the value of Vertex stock. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Vertex. More…
| Total Revenues | Net Income | Net Margin |
| 529.81 | -31.48 | -5.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Vertex. More…
| Operations | Investing | Financing |
| 67.36 | -80.59 | -20.88 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Vertex. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 725.07 | 499.36 | 1.49 |
Key Ratios Snapshot
Some of the financial key ratios for Vertex are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.9% | – | -3.3% |
| FCF Margin | ROE | ROA |
| -1.7% | -4.8% | -1.5% |
Analysis – Vertex Stock Fair Value Calculator
At GoodWhale, we analyzed the fundamentals of VERTEX and ran our proprietary Valuation Line to determine the fair value of its shares. We concluded that the fair price of VERTEX share should be around $21.7. However, the current market price of VERTEX is $22.8, indicating that the stock is overvalued by 5.0%. More…
Peers
The company was founded in 1978 and is headquartered in Berwyn, Pennsylvania. Vertex Inc has several competitors, including KLDiscovery Inc, TKC Corp, and Business-intelligence of Oriental Nations Corp Ltd.
– KLDiscovery Inc ($OTCPK:KLDI)
KLDiscovery Inc is a global provider of electronic discovery, data recovery, and litigation support services. The company has a market cap of 106.98M as of 2022 and a Return on Equity of -7.61%. KLDiscovery Inc provides services to law firms, corporations, and government agencies worldwide. The company offers a full range of services, from data collection and processing to document review and trial preparation.
– TKC Corp ($TSE:9746)
TKC Corp is a publicly traded company with a market cap of 199.69B as of 2022. The company has a Return on Equity of 9.32%. TKC Corp is a diversified conglomerate with businesses in a variety of industries including construction, real estate, hospitality, and health care. The company has a strong presence in the United States, Asia, and Europe.
– Business-intelligence of Oriental Nations Corp Ltd ($SZSE:300166)
Oriental Nations Corp Ltd is a 9.89B market cap company with a ROE of 1.79%. The company is involved in the business of intelligence and information technology.
Summary
Vertex Pharmaceuticals, Inc. is a biotechnology company that has announced its collaboration with CRISPR Therapeutics to develop gene therapies for sickle cell disease and beta thalassemia. Despite the potential of this venture, the US Food and Drug Administration (FDA) staff has cited risks to safety that may arise from the use of this technology. Investors should proceed with caution and research the potential risks associated with investing in Vertex prior to making any investment decisions. Additionally, investors should keep in mind that FDA approval is still pending and that potential therapies may take some time to be developed before they can be made available to the public.
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