We believe Vertex Pharmaceuticals Stock This is a good buying opportunity at the moment. VRTX shares are currently trading near $ 180, down 27% from their pre-Covid high of $ 248 in February 2020, just before the coronavirus pandemic hit the world.
VRTX shares traded above $ 200 in the first half of this year before falling sharply from $ 217 on June 10 to $ 187 on June 16. This may be due to the company’s decision to discontinue clinical trials of VX-864. , Rare hereditary disease Experimental treatment of α-1 antitrypsin. Note that at the beginning of October 2020, the company discontinued another drug, VX-814, which was being investigated for potential treatments for AATD. Since then, VRTX shares have been in the range of $ 180 to $ 200. Last month, the company announced the completion of Trikafta’s Global Phase 3 trial in children aged 6 to 11 years with cystic fibrosis. Please note that Trikafta has already been approved for patients over 12 years of age with cystic fibrosis. Trikafta is a great drug for the apex
Returning to pre-Covid levels means that VRTX inventories need to rise 37% from here.Even if you go by our side Evaluation of Vertex Pharmaceuticals At around $ 245 per share, there seems to be plenty of room for more than 35% growth in VRTX shares. The reason behind this is primarily the Trikafta extension. Investors are also concerned about the future of the company other than cystic fibrosis, but the company’s management said it is trying to acquire more assets to strengthen the company’s pipeline. Long-term investors believe that the current decline in VRTX stocks can be used as a buying opportunity. Our conclusion is Inventories of Vertex Pharmaceuticals during the 2008 recession and now With interactive dashboard analysis.
Timeline of the 2020 Coronavirus Crisis:
- December 12, 2019: First reported case of coronavirus in China
- January 31, 2020: WHO declares a global health emergency.
- February 19, 2020: S & P 500 hits record high with signs of effective containment in China and expectations of monetary easing by major central banks
- March 23, 2020: S & P 500 34% down From the peak level seen on February 19, 2020, as cases of Covid-19 are accelerating outside of China.Doesn’t help oil prices plummet in mid-March in Saudi-led price competition
- After March 24, 2020: S & P 500 92% recovery From the lows seen on March 23, 2020, the Fed’s multi-billion dollar stimulus has caused the economy to rise and fall during the long-term blockade and vaccination promotion, with several waves of Covid infection. Nevertheless, things were gradually returning to near normal.
In contrast, here’s how VRTX stocks and the wider market progressed during the 2007-08 crisis.
2007-08 crisis timeline
- October 1, 2007: Approximate pre-crisis peak of the S & P 500 Index
- September 1, 2008 – October 1, 2008: Accelerating market decline in response to Lehman bankruptcy filing (September 15, 2008)
- March 1, 2009: Approximate bottoming out of S & P 500 index
- December 31, 2009: First recovery to levels before accelerating decline (around September 1, 2008)
Vertex and S & P 500 Performance during the 2007-08 Financial Crisis
VRTX stocks fell from a pre-crisis peak of around $ 39 in September 2007 to a level of $ 30 in March 2009 (because the market bottomed out). This means that VRTX stocks have fallen only 23% from their pre-crisis highs. After the 2008 crisis, the S & P 500 index rose significantly by 42% to the $ 43 level by January 2010. In contrast, the S & P 500 Index fell 51% from its peak in September 2007 to its bottom in March 2009, and then 48% by January 2010.
What about the foundations of the pinnacle of recent years?
Vertex’s revenue has skyrocketed to $ 6.7 billion in the last 12 months, compared to just $ 3 billion in 2018. This could be primarily due to the increase in Trikafta sales since the first approval in late 2019. In the future, revenue is estimated to surge to $ 7.3. In 2021, it will be $ 1 billion, reflecting a 17% year-on-year growth. Looking at revenue, the company’s EPS has fallen slightly to $ 7.68 over the past 12 months, compared to $ 8.24 in 2018. On an adjusted basis, the 2021 EPS is estimated at $ 12.34 compared to $ 10.32 (consensus estimate). In 2020.
Does Vertex have enough cash cushions to meet its obligations?
Vertex’s debt has surged from $ 591 million in 2018 to $ 894 million today and from $ 3.2 billion in 2018 to $ 6.7 billion today. Vertex has spent $ 200 million in cash on investments in the last 12 months. During the same period, it earned $ 2.1 billion in cash from the business. Overall, the company has a solid liquidity cushion to survive the current crisis.
Covid-19 Crisis Phase:
- Early to mid-March 2020: fear When the outbreak of coronavirus spreads rapidly, reality, The number of cases accelerating worldwide
- After late March 2020: Social distance measures + blockade
- April 2020: Federal Reserve Stimulation Suppresses short-term survival anxiety
- May-September 2020: Recovery of demand, The panic no longer occurs despite the gradual release of the blockade and the steady increase in the number of cases
- October 2020-February 2021: Unprecedented Rapid increase in the case of Covid Force a new blockade nationwide
- After March 2021: By continuous promotion of vaccination and gradual resumption Demand improvement – Rising market sentiment
Given the steady decline in Number of new Covid-19 cases in the United StatesDemand is expected to improve to raise market expectations. As investors are paying close attention to the expected results of 2021, Vertex shares see the potential for a strong rise due to the expansion of its blockbuster drug Trikafta.
VRTX shares can reach higher levels, but in 2020 there will be many price discontinuities that can offer attractive trading opportunities. For example, you’ll be surprised at how counterintuitive the valuation of stock prices is. IDEXX vs. vertices..
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