Vertex Pharmaceuticals' Rally Has a New Engine -- and Wall Street Thinks the Best Is Still Ahead
Don't bet against Vertex Pharmaceuticals in cystic fibrosis.
Overview
Vertex Pharmaceuticals (NASDAQ: VRTX) has dominated the cystic fibrosis (CF) drug market -- where it has a virtual monopoly -- since it launched its first medicine in this field in 2012. As a result, it has performed extremely well over this period. However, the bears argue that because the biotech generates almost all of its sales from this therapeutic area, its business would crumble once it faces competition. And many thought that day was getting closer, as Sionna Therapeutics (NASDAQ: SION) seemed to be developing potentially better CF drugs. But recent developments have proved once again why Vertex won't easily lose its lead in its core market. Here's what investors need to know.
Image source: The Motley Fool.
First, some background on CF. The disease is caused by mutations in the CFTR gene, which produces a defective CFTR protein. Vertex Pharmaceuticals' medicines can significantly improve CFTR function, but even with these drugs, most patients don't achieve normal CFTR protein function. Sionna Therapeutics is trying to change that. The company's medicines could stabilize CFTR function in most patients, at least that's what the company argues. But Sionna recently hit a roadblock.
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Originally published at www.fool.com.