Vertex's Non-Opioid Pain Drug Gets Some UnitedHealth Coverage
The medication, called Journavx, was approved in the US in January. The financial success of new drugs largely depends on how they're treated by pharmacy benefit managers that determine coverage for patients.
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2 days ago
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2 Growth Stocks That Are No-Brainer Buys Right Now
Key Points Vertex Pharmaceuticals' recent dip presents an excellent buying opportunity, given its promising prospects. Netflix is performing exceedingly well, and the streaming giant has every reason to continue doing so. 10 stocks we like better than Vertex Pharmaceuticals › Over the past five years, the stock market has endured a pandemic and the economic issues that followed, along with inflationary pressures, geopolitical tensions, trade wars, and other macroeconomic challenges. Despite all that, equities have performed well. Though we can't predict the future in great detail, we can be confident that stocks will generally continue to deliver strong returns over the long run. And one of the best ways to cash in on that is to invest in stocks that can exceed the market's performance. Two that look particularly attractive are Vertex Pharmaceuticals (NASDAQ: VRTX) and Netflix (NASDAQ: NFLX). Here's why these two stocks appear to be great options for investors. 1. Vertex Pharmaceuticals Vertex Pharmaceuticals' shares recently dropped following a clinical setback. The company's VX-993, a potential treatment for acute pain, did not impress in a phase 2 study. Management also stated that it would no longer pursue one promising indication for its new pain medicine, Journavx, following feedback from regulators. The market responded by selling off the stock. However, Vertex's overall business remains strong, as evidenced by its second-quarter results. Revenue jumped by 12% year over year to $2.96 billion. Vertex is still the only company that markets medicines for cystic fibrosis (CF), a rare lung disease. The company's most recent launch in this market, Alyftrek, which earned approval in the U.S. in December, is already making solid headway; it generated $156.8 million in sales in the second quarter. Vertex's monopoly in CF grants it significant pricing power, which is one of the best parts of the business and makes the stock so attractive. The company's newer non-CF launches, Journavx and Casgevy -- the latter of which treats two rare blood diseases -- aren't yet contributing significantly to its sales, but that should change over time. Furthermore, Vertex has some highly promising late-stage assets. One of them is zimislecel, an investigational therapy for type 1 diabetes; it could help eliminate severe hypoglycemic events, potentially life-threatening side effects of the disease. Vertex plans to file regulatory applications for zimislecel next year. That's to say nothing of various early-stage projects Vertex is working on. Recent developments were not great for the company, so it's not that surprising that the stock fell significantly. Even so, Vertex Pharmaceuticals has faced similar one-day drops before; it usually recovers thanks to solid financial results and strong clinical and regulatory progress. Expect the biotech to do the same this time around. Vertex looks like a strong buy following its recent dip. 2. Netflix Netflix has been on fire over the past few years. Revenue growth has been strong, and the trend continues. In the second quarter, the top line increased by 15.9% year over year to $11.1 billion. The company has experienced profitable growth recently -- it's growing not only revenue, but also profit, margins, and free cash flow. The entertainment giant continues to benefit from the switch to streaming, but there is still plenty of white space ahead. According to management, the company still expects hundreds of millions of people to sign up on its platform. And subscriber growth isn't the only thing that will drive better results. Increased engagement, as measured by viewing hours, can help boost the company's relatively new advertising business. Netflix estimates that it has only captured about 6% of its revenue potential, leaving it with massive long-term opportunities as streaming continues to displace cable. Competition might be an issue, but thanks to its brand name and network effects, Netflix has built a solid moat. Valuation is another problem some investors might point to here. The stock is trading at around 48 times forward earnings, well above the average for communication services stocks, which is 20. However, Netflix is changing the entertainment world. The company might not realize its master plan for many years, perhaps even several decades, given the massive worldwide addressable market. That's what makes its stock so attractive. For those who want to go along for the ride, Netflix's shares remain a buy even at current levels. Should you invest $1,000 in Vertex Pharmaceuticals right now? Before you buy stock in Vertex Pharmaceuticals, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Vertex Pharmaceuticals wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $663,630!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,115,695!* Now, it's worth noting Stock Advisor's total average return is 1,071% — a market-crushing outperformance compared to 185% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 13, 2025 Prosper Junior Bakiny has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Netflix and Vertex Pharmaceuticals. The Motley Fool has a disclosure policy. 2 Growth Stocks That Are No-Brainer Buys Right Now was originally published by The Motley Fool Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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07-08-2025
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7 Reasons Why Vertex Pharmaceuticals Is a No-Brainer Stock to Buy on the Dip
Key Points Vertex Pharmaceuticals stock sold off on two pipeline disappointments. The biotech company continues to grow with promising new drugs on the horizon. Vertex's price looks quite attractive, relative to its growth prospects. 10 stocks we like better than Vertex Pharmaceuticals › Vertex Pharmaceuticals (NASDAQ: VRTX) reported its second-quarter results after the market closed on Monday. Its shares plunged more than 17% in early trading on Tuesday. Were Vertex's Q2 results horrible? Not at all. Instead, investors reacted negatively after the big biotech company announced two disappointing developments with its pipeline. Such steep sell-offs can sometimes present great buying opportunities. I think that's the case with Vertex. Here are seven reasons why Vertex is a no-brainer stock to buy on the dip. 1. The bad news wasn't as horrible as the sell-off indicated One of Vertex's pipeline disappointments was that VX-993 didn't meet the primary endpoint in a phase 2 study evaluating the NaV1.8 pain signal inhibitor in treating acute pain following bunionectomy surgery. The other bad news was that the U.S. Food and Drug Administration (FDA) doesn't see a path for Vertex to obtain a broad label in peripheral neuropathic pain (PNP) for suzetrigine at this point. Vertex won't move forward with VX-993 as monotherapy in treating acute pain now. However, it's not the end of the world for a phase 2 program to flop. The company already markets Journavx (suzetregine) in treating acute pain. Also, Vertex isn't giving up on getting a broad PNP label for suzetrigine. It's regrouping, though, and prioritizing diabetic peripheral neuropathy (DPN) as its first PNP indication. The company plans to quickly initiate a second DPN phase 3 study. But Vertex will also work with the FDA to expand the DPN indication to add other neuropathic pain conditions and hopefully find a way to win a broad PNP label. 2. Journavx appears to be on track to become a megablockbuster Meanwhile, Journavx's commercial launch is humming along. Vertex CEO Reshma Kewalramani said in the Q2 earnings call that "formulary coverage is going really well," and "frankly, faster than I would have expected." She mentioned that the company's phase 4 confirmatory study data looks "really good, not only in terms of pain control, but also in terms of reducing opioid use." Chief Commercial Officer Duncan McKechnie revealed that Vertex is cranking up its marketing for Journavx and adding field support in response to the strong contracting and formula progress that has been achieved. He said the company is "receiving incredibly positive feedback from physicians and patients on how well Journavx is working for them clinically." According to McKechnie, Vertex remains highly confident that the pain drug will be another multibillion-dollar franchise for the company. 3. Vertex continues to grow robustly Almost lost in the shadow of the pipeline disappointments was the fact that Vertex continues to grow robustly. The company's revenue jumped 12% year over year in Q2 to $2.96 billion. It posted adjusted profits of $1.2 billion, a huge improvement from the $3.3 billion loss in the prior-year period (which was due to the Alpine acquisition). 4. Vertex's CF dominance is more secure than ever Vertex's dominance in cystic fibrosis (CF) appears to be more secure than ever. New CF drug Alyftrek is gaining momentum in the marketplace, especially with patients who haven't begun treatment with CFTR modulators or previously discontinued use of one of Vertex's other CF therapies. Alyftrek isn't just Vertex's best CF therapy yet. It should also be the company's most profitable CF drug because of a lower royalty burden, and its patents run through 2039. In addition, Vertex plans to restart the phase 1 dosing of VX-522 after a temporary pause. This messenger RNA therapy holds the potential to treat the 5,000 or so CF patients who can't benefit from Vertex's existing drugs. 5. Two new drugs could be on the way soon Vertex could soon add two new drugs with huge potential to its lineup. The company expects to file for regulatory approvals of zimislecel in treating severe type 1 diabetes in 2026. If all goes well with an interim analysis of a phase 3 study evaluating povetacicept in treating IgA nephropathy, Vertex could also file for accelerated approval of the drug in the first half of next year. 6. Trump administration policies aren't a problem for the company Some drugmakers could be hit hard by the Trump administration's tariffs on pharmaceutical imports and its plans to implement most-favored-nation (MFN) drug pricing. But not Vertex. CFO Charlie Wagner said in the Q2 call, "We expect an immaterial cost impact from tariffs in 2025 based on what we know today due to our significant U.S. presence and our geographically diverse supply chain." As for MFN, Kewalramani confirmed that Vertex didn't receive a letter that President Trump sent to multiple drugmakers demanding that they offer their medications to Medicare, Medicaid, and private insurers in the U.S. at the same low prices they charge outside the U.S. 7. The price is right Finally, the price is right to buy Vertex on the dip. The stock's price-to-earnings-to-growth (PEG) ratio, which is based on five-year earnings growth projections of analysts surveyed by LSEG, is a super-low 0.58. I don't think Vertex's pipeline disappointments will change the fact that this biotech stock remains attractively valued with its growth prospects factored into the equation. Do the experts think Vertex Pharmaceuticals is a buy right now? The Motley Fool's expert analyst team, drawing on years of investing experience and deep analysis of thousands of stocks, leverages our proprietary Moneyball AI investing database to uncover top opportunities. They've just revealed their to buy now — did Vertex Pharmaceuticals make the list? When our Stock Advisor analyst team has a stock recommendation, it can pay to listen. After all, Stock Advisor's total average return is up 1,039% vs. just 181% for the S&P — that is beating the market by 858.19%!* Imagine if you were a Stock Advisor member when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $631,505!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,103,313!* The 10 stocks that made the cut could produce monster returns in the coming years. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of August 4, 2025 Keith Speights has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy. 7 Reasons Why Vertex Pharmaceuticals Is a No-Brainer Stock to Buy on the Dip was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
06-08-2025
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Vertex Pharmaceuticals (VRTX) Hits New All-Time Low on Failed Clinical Trial
We recently published . Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) is one of the worst-performing stocks on Tuesday. Vertex Pharmaceuticals nosedived on Tuesday to hit a new all-time low following the termination of a clinical trial for an experimental pain medicine. The company dropped as low as 21 percent to $373.2 before a slight uptick to close the day just down by 20.6 percent at $374.98 apiece. In a statement, Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) said that its clinical trial for VX-993 for the Treatment of Acute Pain 'did not result in a statistically significant improvement' to the enrolled patients. 'Based on these results, Vertex will not progress VX-993 into pivotal development as monotherapy in acute pain,' it said. The termination overshadowed the company's impressive earnings performance in the second quarter and first half of the year. During the quarter, Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) swung to a net income of $1.03 billion from a $3.593 billion net loss in the same period last year. Total revenues grew by 12 percent to $2.96 billion from $2.64 billion year-on-year. In the first half, Vertex Pharmaceuticals Inc. (NASDAQ:VRTX) swung to a net profit of $1.68 billion from a $2.49 billion net loss year-on-year, while total revenues grew by 8 percent to $5.73 billion from $5.3 billion. While we acknowledge the potential of VRTX as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the .
