The American pharmaceutical sector appears to be a unique collection of investment ideas. We have been paying a lot of attention to pharma lately, and for good reason. As the results of 2022 show, the sector is growing well with a general downward trend.

Vertex Pharmaceuticals is another bright representative of the biotechnological direction.

Business strengths:

• 4 key drugs: Orkambi, Kalydeco, Trikafta, Symdeko;

• the company has a virtual monopoly on medicines for the treatment of cystic fibrosis. The patent for Trikafta in the USA is valid until 2037. Leadership in the sector allows you to keep drug prices high;

• extensive research and testing of innovative mechanisms.

Risks:

• a change in US policy regarding the formation of prices for expensive drugs.

Vertex has no obvious competitors with the same line of active drugs for the treatment of autosomal disease.  

The financial performance of Vertex Pharmaceuticals – we have data for the third quarter of 2022 – looks very good. Revenue for the reporting period increased by 17.7% YoY, quarterly adjusted profit +9% YoY, EPS – $4.01 (+$0.37 above expectations).

The consensus forecast for Vertex Pharmaceuticals shares for the next 12 months is $345.

The daily trading schedule of the company’s securities is cautious. The MACD indicator has descended into the negative zone, signaling a sale, but the potential seems to be exhausted. The Stohastic oscillator exits the oversold zone and forms a buy signal.