Investors were quick to jump on the Moderna (NASDAQ: MRNA) bandwagon during the early days of the pandemic, driven by the company’s groundbreaking coronavirus vaccine. This product catapulted Moderna from a clinical-stage biotech to a profitable commercial-stage company in record time, raking in billions in revenue. However, recent times have seen Moderna stumble as vaccine sales decline and its RSV vaccine fails to deliver expected growth.
Despite Moderna’s challenges, the company has made strides in cost reduction and has refocused its pipeline on promising programs. This shift has caught the attention of investors, with the stock climbing over 30% in the past month. However, for those seeking a more stable biotech investment, Vertex Pharmaceuticals (NASDAQ: VRTX) may be a better choice.
Vertex has a solid track record of earnings growth, particularly in the treatment of cystic fibrosis (CF). The company’s CFTR modulators, such as Trikafta and Alyftrek, have transformed the treatment landscape for CF patients, with nearly 95% of those affected benefiting from these drugs. Furthermore, Vertex’s intellectual property protections ensure its dominance in the CF market well into the next decade.
In addition to its success in CF treatment, Vertex has expanded into other therapeutic areas, gaining approval for drugs like Casgevy for blood disorders and Journavx for pain management. These new products have the potential to add billions to Vertex’s revenue in the coming years, with Journavx offering a non-opioid alternative to traditional painkillers.
From a financial standpoint, Vertex has seen its stock price soar nearly 100% over the past five years, with a 15% increase this year alone. While the current valuation may not be considered cheap, it reflects the company’s leadership in CF treatment and its diverse product portfolio.
While no stock is immune to market fluctuations, Vertex’s strong financial position and innovative pipeline make it a more attractive long-term investment compared to Moderna. Before investing in Vertex Pharmaceuticals, consider the insights provided by the Motley Fool Stock Advisor team, who have identified the top 10 stocks for investors to buy now, with Vertex Pharmaceuticals notably absent from the list.
