Vertex Pharmaceuticals Just Made a $10 Billion Move. Is the Stock a Buy?
Additional blockbuster drugs may be on the horizon.
Overview
Vertex Pharmaceuticals (NASDAQ: VRTX) is a biotech company that has steadily delivered growth to investors, thanks to its dominance in cystic fibrosis (CF) treatment. The company's portfolio of CF drugs has transformed the lives of patients and helped Vertex's earnings soar well into the billions of dollars. This is likely to continue as Vertex's solid intellectual property extends its leadership through at least the late 2030s.
And in recent years, Vertex has made moves to make this story even brighter. This is by broadening its presence into other areas, with launches of a gene editing treatment for blood disorders and a pain management drug. The company has also used acquisitions to grow, and this brings me to the recent $10 billion move.
Details
Vertex this week announced its acquisition of Crinetics Pharmaceuticals (NASDAQ: CRNX), a company that may add $5 billion in peak annual revenue to Vertex's top line. With this deal taking shape, is Vertex a buy? Let's find out.
Source
Originally published at www.fool.com.
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