VRTX Investment Analysis Report & Stock Research, Vertex Pharmaceuticals, Inc.

Vertex Pharmaceuticals, Incorporated (VRTX)

VRTX Stock Report

2-Year Price History

View Larger VRTX Chart

NASDAQ:VRTX

$37.81

(2/9 11:59AM)

+1.0%

Open	$37.74	Mkt Cap	$6.8 Billion
High	$38.1	52Wk High	$44.24
Low	$37.33	52Wk Low	$25.94
Volume	524,281	Avg Vol 10D	1.9 Million

Ockham's Rating/Recommendation Summary

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VRTX Revenue

For a long time, value investors have used the current share price relative to sales per share levels as an important valuation tool. We utilize a historical weighted average methodology that treats recent years more importantly in the calculation. When looking at VRTX through this framework, we can see that our weighted average historical high and low Price to Sales per share ratios over the last 10 years are 40.30x and 20.73x respectively.

Utilizing this range we can see that VRTX’s current Price to Sales per share ratio of 67.16x is significantly above its historical average. This places VRTX at the upper end of its historical range relative to sales per share and makes it difficult to suggest an attractive price outlook. At current sales per share levels, we would need to see a decline in the Price to Sales ratio of 120% merely to return VRTX to its historical average.

VRTX Cash Earnings

When there is not enough positive Cash Earnings history available for a company, we at Ockham Research can find it quite difficult to actually rate their ability to generate cash. Such is the case with VRTX. When a company has current positive cash earnings but not enough years of history to compare it to, we find the correlation of cash earnings to valuation significantly hindered. So with VRTX, we will have to wait to see if there are a few more cycles of positive Cash Earnings numbers before we will be confident in our Cash Earnings analysis.

VRTX Dividends

A positive Ockham rating does not require a company to pay out an inviting dividend or a dividend at all. However, we believe dividends provide a useful measure of a company's inherent expectations. Although they may currently pay a dividend, our data source has no historical record of it for VRTX. Since we cannot apply our historical trend analysis to dividends for VRTX we have a neutral score for the dividend portion of our analysis.

Peer Comparison

Vertex Pharmaceuticals, Inc. Industry Grouping

(2/8/2010)

Company	Ticker	Market Cap (Ml)	Latest Price	Price/Cash Earnings				Price/Sales				5-Yr. Rev. Growth Rate	5-Yr. Avg. ROE.
Company	Ticker	Market Cap (Ml)	Latest Price	Current	10-Yr. Range*			Current	10-Yr. Range*			5-Yr. Rev. Growth Rate	5-Yr. Avg. ROE.
Peer Company Averages (not including VRTX)				13.03	5.75	»	42.77	2.90	1.26	»	6.77	18.60%	11.71%
				*10 year range does not include current year values
Forest Laboratories, Inc.	FRX	$8.7 Billion	$28.78	10.75	6.41	»	38.63	2.21	1.30	»	10.99	7.73%	22.58%
Life Technologies Corp.	LIFE	$8.5 Billion	$47.42	21.43	7.85	»	52.12	2.58	1.41	»	7.23	15.81%	4.00%
Hospira Inc	HSP	$7.9 Billion	$48.76	12.23	5.34	»	19.07	2.03	0.89	»	2.78	n/a	18.34%
Vertex Pharmaceuticals, Inc.	VRTX	$6.8 Billion	$37.42	-1.00	-1.00	»	-1.00	67.16	6.00	»	78.64	23.89%	-1.86%
Warner Chilcott Limited	WCRX	$6.3 Billion	$25.21	10.24	3.46	»	52.83	6.92	2.34	»	7.23	n/a	0.08%
Mylan, Inc.	MYL	$5.4 Billion	$17.76	10.52	5.68	»	51.21	0.76	0.34	»	5.62	32.27%	13.55%

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VRTX News

The Latest Financial News

The most recent **Stocks on Financial TV & Blogs** from *impactful financial news* sources
7:18A, Feb. 05,2010 VRTX $38.42 Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals, Incorporated (VRTX) Discussed on Seeking Alpha's Seeking Alpha Wall St Breakfast Vertex Pharmaceuticals, Incorporated is in the news. Find out how this impacts VRTX trading on Ockham Research. about $840M. Expects a Q1 pretax charge of $185M-195M on loss related to sale of polypropylene unit. Shares -2% AH. (PR, earnings call transcript) VERTEX PHARMACEUTICALS (VRTX): Q4 EPS of -$0.85 in-line. Revenue of $34M (+3.7%) vs. $33M. Shares +4.7% AH. (PR, earnings call transcript) Today's Markets In Asia, Nikkei -2.9% to 10,057. Hang Seng -3.3% to 19,665. Shanghai -1.9% to 2,939. BSE -2.7% to 15,791. In Europe at midday, London -1.8%. Paris -2.2%. Frankfurt “… (PR, earnings call transcript) VERTEX PHARMACEUTICALS (VRTX): Q4 EPS of -$0. 85 in-line. Revenue of $34M (+3. 7%) vs. $33M. Shares +4. 7% AH. …” – VRTX on Seeking Alpha Wall St Breakfast
7:19A, Feb. 04,2010 VRTX $40.23 Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals, Incorporated (VRTX) Discussed on Seeking Alpha's Seeking Alpha Wall St Breakfast Vertex Pharmaceuticals, Incorporated is in the news. Find out how this impacts VRTX trading on Ockham Research. HOT, K, MA, MCO, MF, NCR, NOC, RAI, RDS.A, SE, SLE, TEN Notable earnings after Thursday's close: ALKS, ATVI, CNW, FIS, ILMN, MCHP, PBI, PKI, SUN, VRTX Seeking Alpha editors Eli Hoffmann and Jason Aycock contributed to this post. Get Wall Street Breakfast by email -- it's free and takes only seconds to sign up. After you finish reading Wall Street BreakfastSeeking Alpha's Market Currentswill keep you current all day long. Complete Story “… A, SE, SLE, TEN Notable earnings after Thursday's close: ALKS, ATVI, CNW, FIS, ILMN, MCHP, PBI, PKI, SUN, VRTX Seeking Alpha editors Eli Hoffmann and Jason Aycock contributed to ... …” – VRTX on Seeking Alpha Wall St Breakfast
11:31A, Jan. 12,2010 VRTX $41.89 Vertex Pharmaceuticals, Inc. The Chief Executive of VRTX Was Discussed on The Call Keeping up with a CEO is one way that we try to better understand the direction of a company, and there was talk about VRTX management on The Call. As of this week's report, we have an Overvalued valuation on VRTX because the price has gotten too high to be justified by the fundamentals. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Vertex Pharmaceuticals, Incorporated has actually sunk a bit in comparison to the others. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards VRTX and think that it will generally perform in-line with the S&P 500. “… matt emmens chairman and ceo of VERTEX PHARMACEUTICALS. Thank you for joining us for the cnbc exclusive and I have a couple more coming up on "power lunch," larry, the ceos of ... …” – VRTX on The Call
11:28A, Jan. 12,2010 VRTX $41.98 Vertex Pharmaceuticals, Inc. Analyst Opinion on VRTX the Topic for The Call Analysts' opinions can often carry a lot of weight, especially when they make major news and are covered on The Call. When taking into account the amount of news coverage each stock normally sees as a percentage of the total, Vertex Pharmaceuticals, Incorporated has actually sunk a bit in comparison to the others. As of this week's report, we have an Overvalued valuation on VRTX because the price has gotten too high to be justified by the fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards VRTX and think that it will generally perform in-line with the S&P 500. “… Sam waxel, and that's ahead of VERTEX PHARMACEUTICALS doing its presentation here at j. P. Morgan later this morning. Needham & company is reiterating its buy rating on the ... …” – VRTX on The Call
1:09P, Nov. 02,2009 VRTX $37.39 Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals, Incorporated (VRTX) Discussed on CNBC's Power Lunch Vertex Pharmaceuticals, Incorporated is in the news. Find out how this impacts VRTX trading on Ockham Research. >> fair enough. Mike ryan, thanks for the time. >>> you heard bertha saying earlier one of the best performers, shares of VERTEX PHARMACEUTICALS. Higher by 11%, $37.38. Cambridge massachusetts company unveg for positive test results on a drug to treat hepatitis c. Mike huckman joins us with vertex's ceo. “… atitis c. Mike huckman joins us with vertex's ceo. …” – VRTX on Power Lunch
1:01P, Nov. 02,2009 VRTX $37.48 Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals, Incorporated (VRTX) Discussed on CNBC's Power Lunch Vertex Pharmaceuticals, Incorporated is in the news. Find out how this impacts VRTX trading on Ockham Research. Technologies is among the winners. There is the nasdaq which was the first to turn lower. >> bucking the trend VERTEX PHARMACEUTICALS a big winner on that stock has been up better than 12% company the company out with important data on its hepatitis c pill. The ceo joins us first on cnbc in just a moment. >> i'm michelle caruso-cabrera. Walmart, a dow component slashing prices further. “… l. The ceo joins us first on cnbc in just a moment. >> i'm michelle caruso-cabrera. Walmart, a dow component slashing prices further. …” – VRTX on Power Lunch
12:49P, Nov. 02,2009 VRTX $37.39 Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals, Incorporated (VRTX) Discussed on CNBC's Power Lunch Vertex Pharmaceuticals, Incorporated is in the news. Find out how this impacts VRTX trading on Ockham Research. Fantastic numbers they put up. And some of these big drug stocks, of course, human genome. That's an amazing story. But there are others in the space as well. Vertex pharmaceutical, VRTX. I'd say that is the leadership area right now. It's not financials at all. They're not leading us down. They're just taking some of the air out of the financial balloon, although with my exposure, i'm in the faz, the double short financial, and i'm continue to trade soft. Let's switch gears here and talk about ford, which is topping the “… at all. They're not leading us down. They're just taking some of the air out of the financial balloon, although with my exposure, i'm in the faz, the double short financial, and i'm continue to trade soft. Let's switch gears here and talk about ford, which is topping the …” – VRTX on Power Lunch
12:33P, Nov. 02,2009 VRTX $37.70 Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals, Incorporated (VRTX) Discussed on CNBC's Power Lunch Vertex Pharmaceuticals, Incorporated is in the news. Find out how this impacts VRTX trading on Ockham Research. >>> take a look at the stock of VERTEX PHARMACEUTICALS up better than 12%. Company out with a drug to treat hepatitis c. We'll talk to the ceo at 1:00 p.M. Eastern time first on cnbc. >>> stronger than expected economic data supporting the view that the economy is improving. Hence why we have a rally today on wall street. “… conomy is improving. Hence why we have a rally today on wall street. …” – VRTX on Power Lunch
9:41A, Aug. 06,2009 VRTX $35.82 Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals, Incorporated (VRTX) Discussed on CNBC's Squawk On The Street Vertex Pharmaceuticals, Incorporated is in the news. Find out how this impacts VRTX trading on Ockham Research. Thank you very much. >>> up next, stock is up 13% since the bottom. And the company is one of jim cramer's favorites. Ceo of gold field joining us next live from johannesburg. >>> and later, the ceo of VERTEX PHARMACEUTICALS is sitting down with mike huckman about the hepatitis c drug. That's up 25% in the past three months. “… man about the hepatitis c drug. That's up 25% in the past three months. …” – VRTX on Squawk On The Street
6:41P, Apr. 06,2009 VRTX $27.05 Vertex Pharmaceuticals, Inc. Vertex Pharmaceuticals, Incorporated (VRTX) Discussed on CNBC's Mad Money Vertex Pharmaceuticals, Incorporated is in the news. Find out how this impacts VRTX trading on Ockham Research. >> caller: one gigantic thank you for everything boo-yah! >> you are welcome for everything boo-yah right back at you, sunshine. >> caller: vertex. VRTX. >> I have so many great biotech companies that are completely and utterly thrown out the may I suggest that instead you “… t that instead you …” – VRTX on Mad Money

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Key Fundamentals

VRTX - Vertex Pharmaceuticals, Incorporated Fundamentals


Price (2/9 11:59AM)	$37.81
Volume (2/9 11:59AM)	524,281
Last Close Price	$37.42
10 Day Average Volume	1.9 Million
13 Week Price Range	$36.15 - $44.24
52 Week Price Range	$25.94 - $44.24
LTM Revenue	$102.0 Million

Shares Outstanding (12/2009)	181.2 Million
Market Capitalization	$6.8 Billion
Shares Held By Institutions	185.1 Million
Institutional Holders	382
% Shares Held By Institutions	%
Earnings Per Share (EPS)	($3.70)
P/E Ratio	n/a
Book Value Per Share	$3.36

Gross Margin	n/a%
Annual Dividend	0.00
Dividend Yield	0.00%
Beta	0.67
Fiscal Year Ends	December

About Vertex Pharmaceuticals, Inc.

Vertex Pharmaceuticals, Incorporated is considered to operate in the Healthcare sector. They specifically operate in the Drug Manufacturers/Other business segment contained within the Drugs industry.

The Company is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases.