![]() The company's products include Xyrem for the treatment of cataplexy and excessive daytime sleepiness in patients with narcolepsy Erwinaze to treat acute lymphoblastic leukemia Prialt for the management of severe chronic pain and FazaClo LD and FazaClo HD, which are orally disintegrating clozapine tablets for the resistant schizophrenia treatment. The company also has candidates for type 1 diabetes in the early stages of development - and here, it is looking for a functional cure for the chronic illness.Jazz Pharmaceuticals Public Limited Company, a specialty biopharmaceutical company, engages in the identification, development, and commercialization of pharmaceutical products for various medical needs in the United States, Europe, and other countries. The drugmaker has several programs in the mid and late stages of development targeting neuropathic and acute pain, APOL1-mediated kidney disease, and Alpha-1 antitrypsin deficiency. It isn't just the company's CF franchise and the upcoming approval of exa-cel. In my view, Vertex Pharmaceuticals will do more of the same thing. The company's P/E and P/S ratios have historically been very high.īut the biotech has, at least to some extent, justified its sky-high valuation metrics over the past decade by outperforming the broader market over this period. Considering all that, exa-cel could add billions in revenue to Vertex's financial results in the next five years and beyond. Vertex will receive 60% of the profits and incur 60% of the costs associated with exa-cel under its agreement with CRISPR. Exa-cel could earn the green light by early next year, and revenue should start coming in not too long after that point. The two entities have also been in talks with government payers to ensure that exa-cel will be covered (it would be inaccessible to most patients without coverage). How so? A price of about $2 million would be reasonable for treatment with exa-cel.Īnd together with its partner, CRISPR Therapeutics, Vertex plans to target 32,000 SCD and TDT patients initially. ![]() ![]() This gene-editing therapy for sickle cell disease (SCD) and beta-thalassemia (TDT) could easily be worth an initial $64 billion. Even assuming it reasonably reflects the growth of Vertex's CF franchise, the company has a massive potential approval on the way, namely that of exa-cel. The estimate of 8.2% growth per year also seems highly conservative, at least to me. That's pretty good for a biotech giant, but it's well below Vertex's nearly 38% annual top-line growth in the past five years. Analysts see the company's top line increasing by 8.2% per year in the next five years. Vertex Pharmaceuticals has several other potential CF approvals that could land well before 2028, but even excluding those, its CF-related revenue in the next half-decade should grow at a good pace. Recently, Vertex's Kalydeco earned approval to treat infants with CF as young as one month old, something that could be meaningful over the mid-term in growing its revenue. ![]() Its most important product is Trikafta, which can treat up to 90% of CF patients (more than 20,000 out of 88,000 of whom are untreated). It's the only drugmaker that sells medicines targeting the underlying causes of CF. But even without exact numbers, we can get a feel for Vertex's revenue and earnings prospects across the next five years.Ĭonsider the company's cystic fibrosis (CF) franchise. That can be difficult given the sheer number of unknowns. Looking at its prospectsĬalculating a company's forward P/S and P/E multiples requires estimating future sales and earnings. VRTX PE ratio (forward), data by YCharts.
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