Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio, and Alyftrek for cystic fibrosis, where Vertex therapies remain the standard of care globally.
It is a $129B healthcare company. Revenue grew 10.2% over the last year, and it keeps 35¢ of every dollar of sales as profit. It trades at 29.3× earnings — in the most expensive third of its own history.
- Website
- vrtx.com
- Location
- Boston, MA
- Employees
- 6 400
- Sector
- Healthcare
- Founded
- 1989
Skills
Six independent scores, 0–100, built from reported numbers and valuation history. Click a row to see how it was scored.
Strong profitability; Valuation lags behind.
Valuation27
- P/E vs own history71th pct · 5/25
- FCF yield2.9% · 5/25
- P/S10.3x · 5/25
- EV/EBITDA24.3x · 12/25
Growth72
- Revenue CAGR12.2% · 20/25
- Net income CAGR14.0% · 20/25
- EPS CAGR ~5Y8.3% · 12/25
- Fwd implied growth16.5% · 20/25
Profitability95
- ROIC32.8% · 25/25
- ROE23.3% · 20/25
- Net margin35.0% · 25/25
- Operating margin38.0% · 25/25
Health50
- Altman Zn/a · 0/25
- Current ratio3.19 · 25/25
- Interest coverage72.4x · 25/25
- Net cash / debtn/a · 0/25
Quality55
- Piotroski F6/9 · 15/25
- Beneish M-2.21 · 12/25
- FCF conversion86% · 22/25
- Margin stabilityσ 20.7% · 6/25
Moat63
- ROIC >12% years8/9 yrs · 20/25
- Median gross margin87.5% · 25/25
- FCF-positive years9/10 yrs · 18/25
- Worst-year net marginworst -6.6% · 0/25
Experience
The company's career so far — founding, the IPO, landmark products and acquisitions, plus revenue milestones and insider buying.
- 2026AcquisitionVertex agreed to acquire Crinetics Pharmaceuticals for $10 billion, one of the largest pharma deals of…
- FY2025FinancialBest year on record$3.95B net income
- FY2024FinancialRevenue crossed $10B$11.0B for the year
- 2024AcquisitionIt was announced Vertex had agreed to acquire the Seattle-headquartered clinical stage…
- 2020ProductSemma Therapeutics created a "small, implantable device that holds millions of replacement beta cells, letting…
- FY2017FinancialTurned profitable$263M net income after a loss year
- FY2016FinancialRevenue already above $1B$1.70B in first reported year
- 1989FoundedVertex was founded in 1989 by Joshua Boger and Kevin J
Achievements
Verifiable track record, straight from the reported numbers.
Strengths & watch-outs
What a bull and a bear would each point to. Both lists come from the reported numbers, not opinions.
Strengths
- High gross margin (86.0%)
- Strongly profitable — 35.0% net margin
- Revenue growing 10.2% year over year
- Strong cash conversion — FCF is 30.2% of revenue
- Interest covered 72.4× by operating earnings
Watch-outs
- Loss-making in 2 of the recent years
Qualifications
The basics a company should meet before you research it further. Each check uses the reported numbers.
- Revenue growing — the company sells more than a year ago+10.2% YoY
- Profitable — makes more than it spends$4.41B TTM
- Profit growing — earnings are higher than last year+6.1% YoY
- Generates cash — cash left after running and investing$3.80B TTM
- Debt under control — could handle its obligationscurrent ratio 3.19
- Established company — not a micro-cap — lower blow-up risk$129B market cap
- Not printing shares — share count not ballooning — you keep your slice-2.0% shares over ~5y
- Proven track record — years of profitability behind it8/10 profitable years
- Financially stable — balance sheet not near distresshealth score 50/100
- Pays a dividend — returns cash to shareholdersno data
- Valuation not extreme — price not wildly above earningsP/E 29.3
Peer comparisonVertex Pharmaceuticals Inc vs 6 largest healthcare peers — cap, P/E, growth and margin side by sideOpen ▾Close ▴
| Company | Market cap | P/E | Revenue growth | Net margin | Profile |
|---|---|---|---|---|---|
| VRTX this company | $129.3B | 29.3 | +10.2% | 35.0% | Mixed |
| LLY Eli Lilly & Co. | $1.0T | 41.6 | +49.6% | 33.5% | Solid |
| JNJ Johnson & Johnson | $630.9B | 29.9 | +8.1% | 21.5% | Mixed |
| ABBV Abbvie Inc. | $488.5B | 77.4 | +10.4% | 9.8% | Mixed |
| MRK Merck & Co., Inc. | $361.0B | 113.2 | +4.6% | 4.8% | Mixed |
| UNH UNITEDHEALTH GROUP INCORPORATED (Delaware) | $340.7B | 24.1 | +6.5% | 3.1% | Mixed |
| NVS Novartis AG | $273.2B | 20.3 | +9.6% | 24.7% | Solid |
Head-to-head: VRTX vs LLY · VRTX vs JNJ · VRTX vs ABBV
References
What covering analysts publish about the company — information only, not a recommendation.
Appendix · Financial records
The full statements behind this CV, FY2016–FY2025. For readers who want to check the numbers.
Live data and quarterly detail: stockcv.com/VRTX
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Deeper analysis of VRTX on PreMarketPriceFigures are derived from company filings (quarterly values normalised from as-filed year-to-date data where applicable) and may be delayed, restated or incomplete. This page is information, not investment advice. Latest price $510.00 · market cap $129B.