Off-topic. I'll reenter VRTX for a few shares. It's not "a value" stock.
I wrongly sold too soon. Either through boredom, maybe because I couldn't see what came next after its so very successful treatment for cystic fibrosis -- nothing in the pipeline. Or nothing that I could understand or see how any of its other prospects could even come close to VRTX's key drug.
Now looking at it a couple of years later and at a higher price (close to ten-year high), I don't see a great outlook for its pipeline (relative to Vertex's key CF drug/drugs). A pain-reliever drug is there, but won't be enough to move the needle compared to trikafka for CF.
Here's what else has happened though (imo):
VRTX CF drug(s) really are terrific in helping people with CF. So where are the competitor's drugs to break VRTX's hold here? Apparently unlike all (almost all?) big successful drugs, there is no significant or successful competitor here.
I originally believed VRTX would be so successful with the drug, that eventually CF wouldn't be problem for anyone with this disease, and the demand for the drug would diminish. I believe I got that very wrong. Apparently the drug is successful/helpful in about 90% of CF patients. Those 90% are living longer. What this apparently means is that there are just as many people or more taking the drug as previously, and they will continue to take Vertex's CF drugs.
I look at VRTX metrics, balance sheet and history: d/e 4.6% ($.8B debt), $11B in cash (which has been growing every year) ---less $5B for an acquisition announced a few days ago, 37% net profit margin, revenue continuing to grow.
Ok, otoh, p/e is high at 29x (too high for a "value investor"), there's no dividend. There is a small stock buyback program.
I hope I got my facts/opinions right.
I'm looking at this as I am Novo Nordisk (NVO -- for diabetes, weight loss, et. al.). There could be or should be a long runway with revenue and profits for their key drugs given demand for their drugs and their dominance.
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