Vertex Pharmaceuticals Incorporated – Buy Healthcare Stocks Now
The year 2020 was a massive one for the healthcare industry. The positive aspect was the increase in demand for COVID-related drugs, diagnostics, and other medical equipment. The downside was the deferment of medical procedures that were not emergency. Overall, certain sub-segments benefited while certain others had to face some headwinds. The importance of healthcare has only grown as a result of the pandemic, and it may be a good time to start looking at long-term options for investors planning to buy healthcare stocks right now. One can look at pharmaceutical companies that are coming out with innovative new drugs. Such drugs are not only a leap forward in medical science, but they also prove to be lucrative cash generators for companies that create them. Vertex Pharmaceuticals is one example of such a company.
Trifakta and Second-Quarter 2021 Earnings
On 29th July 2021, Vertex Pharmaceuticals announced its second-quarter 2021 earnings numbers. Total revenues were up 18% year-on-year from $1.52 billion (Q22020) to $1.79 billion. Trifakta is the most significant drug for Vertex. It contributed $1.25 billion out of the total revenue of $1.79 billion. Trifakta’s revenue contribution in Q22020 was $918 million. Trifakta is the largest contributor to Vertex and was responsible for revenues of $4 billion in the year 2020. Non-GAAP operating income and non-GAAP net income were both up 18% year-on-year. Net income per share on a non-GAAP diluted basis came in at $3.11 as compared to $2.61 in Q22020. This was a growth of 19% year on year. Company CEO Reshma Kewalramani said that the Cystic Fibrosis franchise of the company was strong as of half-year 2021. She added that reimbursement levels were robust. Vertex Pharmaceuticals continues to be an interesting option for investors who wish to buy healthcare stocks now.
Vertex Pharmaceuticals estimates its Trifakta peak sales to be around $6 billion. It is still some way away from those levels. The company has several other drugs in the pipeline to treat important health conditions like thalassemia and type 1 diabetes. The longer-term prospects of the company look bright.