Shares of biotech company Vertex Pharmaceuticals (VRTX) are down in today’s trading despite the company upping its revenue forecast for the year. Thanks to the growth of its cystic fibrosis (CF) treatment and the soon-to-launch gene therapy Casgevy, the company now expects 2024 revenue to be between $10.65 billion and $10.85 billion, which is higher than the previous estimate of $10.55 billion to $10.75 billion.
Casgevy, which is approved in the U.S. for sickle cell disease and transfusion-dependent beta-thalassemia, is being developed with CRISPR Therapeutics (CRSP). Vertex’s CEO Reshma Kewalramani said the firm is focused on executing its CF strategy and launching Casgevy globally in the second half of the year. It is also preparing for the potential launches of the vanzacaftor triple for CF and suzetrigine for acute pain, with the FDA expected to make decisions on them in early January 2025.
Nevertheless, it would seem that the reason for the stock’s decline is likely due to its underwhelming Q2 results. In the second quarter, sales of Vertex’s CF drugs increased by about 6% from the previous year to roughly $2.65 billion. Furthermore, earnings came in at -$12.83 per share. Both figures missed estimates.
Is VRTX a Good Stock to Buy Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on VRTX stock based on 15 Buys, five Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 42% rally in its share price over the past year, the average VRTX price target of $470.89 per share implies 4.56% downside risk.
