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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 6/10

vs
industry
vs
history
Cash to Debt 2.27
VRTX's Cash to Debt is ranked higher than
66% of the 917 Companies
in the Global Biotechnology industry.

( Industry Median: 20.79 vs. VRTX: 2.27 )
VRTX' s 10-Year Cash to Debt Range
Min: 0.92   Max: 26.61
Current: 2.27

0.92
26.61
Equity to Asset 0.55
VRTX's Equity to Asset is ranked higher than
66% of the 766 Companies
in the Global Biotechnology industry.

( Industry Median: 0.65 vs. VRTX: 0.55 )
VRTX' s 10-Year Equity to Asset Range
Min: -0.02   Max: 0.95
Current: 0.55

-0.02
0.95
F-Score: 3
Z-Score: 10.59
M-Score: -3.95
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 5/10

vs
industry
vs
history
Operating margin (%) -97.07
VRTX's Operating margin (%) is ranked higher than
69% of the 825 Companies
in the Global Biotechnology industry.

( Industry Median: -65.07 vs. VRTX: -97.07 )
VRTX' s 10-Year Operating margin (%) Range
Min: -602.63   Max: 8.07
Current: -97.07

-602.63
8.07
Net-margin (%) -56.85
VRTX's Net-margin (%) is ranked higher than
73% of the 825 Companies
in the Global Biotechnology industry.

( Industry Median: -70.66 vs. VRTX: -56.85 )
VRTX' s 10-Year Net-margin (%) Range
Min: -630.27   Max: 2.1
Current: -56.85

-630.27
2.1
ROE (%) -40.24
VRTX's ROE (%) is ranked higher than
66% of the 862 Companies
in the Global Biotechnology industry.

( Industry Median: -21.70 vs. VRTX: -40.24 )
VRTX' s 10-Year ROE (%) Range
Min: -469.08   Max: 3.76
Current: -40.24

-469.08
3.76
ROA (%) -22.27
VRTX's ROA (%) is ranked higher than
71% of the 920 Companies
in the Global Biotechnology industry.

( Industry Median: -18.92 vs. VRTX: -22.27 )
VRTX' s 10-Year ROA (%) Range
Min: -65.05   Max: 1.34
Current: -22.27

-65.05
1.34
ROC (Joel Greenblatt) (%) -110.34
VRTX's ROC (Joel Greenblatt) (%) is ranked higher than
74% of the 905 Companies
in the Global Biotechnology industry.

( Industry Median: -215.73 vs. VRTX: -110.34 )
VRTX' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: -985.91   Max: 85.47
Current: -110.34

-985.91
85.47
Revenue Growth (%) 95.60
VRTX's Revenue Growth (%) is ranked higher than
99% of the 648 Companies
in the Global Biotechnology industry.

( Industry Median: -0.90 vs. VRTX: 95.60 )
VRTX' s 10-Year Revenue Growth (%) Range
Min: -32.4   Max: 130.2
Current: 95.6

-32.4
130.2
EBITDA Growth (%) 2.60
VRTX's EBITDA Growth (%) is ranked higher than
83% of the 626 Companies
in the Global Biotechnology industry.

( Industry Median: -8.10 vs. VRTX: 2.60 )
VRTX' s 10-Year EBITDA Growth (%) Range
Min: -17   Max: 105.6
Current: 2.6

-17
105.6
EPS Growth (%) -19.30
VRTX's EPS Growth (%) is ranked higher than
69% of the 645 Companies
in the Global Biotechnology industry.

( Industry Median: -10.20 vs. VRTX: -19.30 )
VRTX' s 10-Year EPS Growth (%) Range
Min: -48.7   Max: 94.5
Current: -19.3

-48.7
94.5
» VRTX's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2013

VRTX Guru Trades in Q3 2013

Jim Simons 139,220 sh (New)
Vanguard Health Care Fund 7,127,997 sh (+19%)
Pioneer Investments 1,239,622 sh (+11.88%)
Steven Cohen 94,900 sh (-82.81%)
» More
Q4 2013

VRTX Guru Trades in Q4 2013

Vanguard Health Care Fund 10,981,500 sh (+54.06%)
Jim Simons Sold Out
Steven Cohen Sold Out
Pioneer Investments 1,216,599 sh (-1.86%)
» More
Q1 2014

VRTX Guru Trades in Q1 2014

Steven Cohen 114,954 sh (New)
Jim Simons 312,164 sh (New)
George Soros 10,000 sh (New)
John Burbank 2,872 sh (New)
Vanguard Health Care Fund 11,628,500 sh (+5.89%)
Pioneer Investments 1,195,955 sh (-1.7%)
» More
Q2 2014

VRTX Guru Trades in Q2 2014

Paul Tudor Jones 2,178 sh (New)
Ken Fisher 6,753 sh (New)
Vanguard Health Care Fund 11,807,500 sh (+1.54%)
Steven Cohen 934,700 sh (unchged)
John Burbank Sold Out
Jim Simons Sold Out
George Soros Sold Out
Pioneer Investments 850,152 sh (-28.91%)
» More
» Details

Insider Trades

Latest Guru Trades with VRTX

(List those with share number changes of more than 20%, or impact to portfolio more than 0.1%)

GuruDate Trades Impact to Portfolio Price Range * (?) Current Price Change from Average Current Shares
George Soros 2014-06-30 Sold Out 0.01%$62.44 - $93.77 $ 91.732%0
John Burbank 2014-06-30 Sold Out 0.01%$62.44 - $93.77 $ 91.732%0
Vanguard Health Care Fund 2014-03-31 Add 5.89%0.13%$67.8 - $85.48 $ 91.716%11628500
John Burbank 2014-03-31 New Buy0.01%$67.8 - $85.48 $ 91.716%2872
George Soros 2014-03-31 New Buy0.01%$67.8 - $85.48 $ 91.716%10000
Vanguard Health Care Fund 2013-12-31 Add 54.06%0.88%$60.18 - $77.83 $ 91.732%10981500
Vanguard Health Care Fund 2013-09-30 Add 19%0.29%$74.53 - $88.51 $ 91.715%7127997
Vanguard Health Care Fund 2013-06-30 Add 140.58%1.05%$52.6 - $85.6 $ 91.724%5990000
Daniel Loeb 2012-12-31 Sold Out 0.77%$38.88 - $59.42 $ 91.799%0
John Burbank 2012-12-31 Sold Out 0.38%$38.88 - $59.42 $ 91.799%0
Daniel Loeb 2012-09-30 Add 40%0.22%$48.38 - $59.07 $ 91.771%700000
George Soros 2012-09-30 Sold Out 0.09%$48.38 - $59.07 $ 91.771%0
John Burbank 2012-09-30 Reduce -25%0.09%$48.38 - $59.07 $ 91.771%150000
Joel Greenblatt 2012-09-30 Sold Out 0.08%$48.38 - $59.07 $ 91.771%0
John Hussman 2012-06-30 Sold Out 0.93%$35.75 - $65.62 $ 91.780%0
Daniel Loeb 2012-06-30 New Buy0.85%$35.75 - $65.62 $ 91.780%500000
John Burbank 2012-06-30 New Buy0.38%$35.75 - $65.62 $ 91.780%200000
Joel Greenblatt 2012-06-30 New Buy0.08%$35.75 - $65.62 $ 91.780%20025
George Soros 2012-06-30 Reduce -44%0.05%$35.75 - $65.62 $ 91.780%112000
Jean-Marie Eveillard 2012-06-30 Sold Out 0.02%$35.75 - $65.62 $ 91.780%0
John Hussman 2012-03-31 Reduce -35%0.34%$32.2 - $42.94 $ 91.7155%1170000
Ray Dalio 2012-03-31 Sold Out 0.24%$32.2 - $42.94 $ 91.7155%0
George Soros 2012-03-31 New Buy0.12%$32.2 - $42.94 $ 91.7155%200000
Jean-Marie Eveillard 2012-03-31 New Buy0.02%$32.2 - $42.94 $ 91.7155%110000
John Hussman 2011-12-31 New Buy0.96%$26.6 - $45.12 $ 91.7161%1800000
Ray Dalio 2011-12-31 Add 1038.59%0.22%$26.6 - $45.12 $ 91.7161%437458
Vanguard Health Care Fund 2011-12-31 Add 9.59%0.04%$26.6 - $45.12 $ 91.7161%2743700
Vanguard Health Care Fund 2011-06-30 Reduce -23.31%0.18%$45.01 - $58.01 $ 91.778%2302800
George Soros 2011-06-30 Sold Out $45.01 - $58.01 $ 91.778%0
Premium More recent guru trades are included for Premium Members only!!
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Ratios

vs
industry
vs
history
P/B 18.42
VRTX's P/B is ranked higher than
61% of the 979 Companies
in the Global Biotechnology industry.

( Industry Median: 6.41 vs. VRTX: 18.42 )
VRTX' s 10-Year P/B Range
Min: 2.89   Max: 37
Current: 18.42

2.89
37
P/S 25.52
VRTX's P/S is ranked higher than
71% of the 979 Companies
in the Global Biotechnology industry.

( Industry Median: 20.67 vs. VRTX: 25.52 )
VRTX' s 10-Year P/S Range
Min: 4.47   Max: 80.48
Current: 25.52

4.47
80.48
EV-to-EBIT -26.13
VRTX's EV-to-EBIT is ranked higher than
54% of the 979 Companies
in the Global Biotechnology industry.

( Industry Median: 9999.00 vs. VRTX: -26.13 )
VRTX' s 10-Year EV-to-EBIT Range
Min: 18.8   Max: 4164.9
Current: -26.13

18.8
4164.9
Current Ratio 3.71
VRTX's Current Ratio is ranked higher than
70% of the 707 Companies
in the Global Biotechnology industry.

( Industry Median: 4.31 vs. VRTX: 3.71 )
VRTX' s 10-Year Current Ratio Range
Min: 1.73   Max: 30.95
Current: 3.71

1.73
30.95
Quick Ratio 3.68
VRTX's Quick Ratio is ranked higher than
71% of the 707 Companies
in the Global Biotechnology industry.

( Industry Median: 3.96 vs. VRTX: 3.68 )
VRTX' s 10-Year Quick Ratio Range
Min: 1.62   Max: 30.95
Current: 3.68

1.62
30.95

Valuation & Return

vs
industry
vs
history
Price/Net Cash 78.76
VRTX's Price/Net Cash is ranked higher than
76% of the 979 Companies
in the Global Biotechnology industry.

( Industry Median: 190.00 vs. VRTX: 78.76 )
VRTX' s 10-Year Price/Net Cash Range
Min: 3.55   Max: 410.43
Current: 78.76

3.55
410.43
Price/Net Current Asset Value 63.45
VRTX's Price/Net Current Asset Value is ranked higher than
75% of the 979 Companies
in the Global Biotechnology industry.

( Industry Median: 79.32 vs. VRTX: 63.45 )
VRTX' s 10-Year Price/Net Current Asset Value Range
Min: 3.43   Max: 191.53
Current: 63.45

3.43
191.53
Price/Tangible Book 18.91
VRTX's Price/Tangible Book is ranked higher than
66% of the 979 Companies
in the Global Biotechnology industry.

( Industry Median: 9.62 vs. VRTX: 18.91 )
VRTX' s 10-Year Price/Tangible Book Range
Min: 2.04   Max: 122.26
Current: 18.91

2.04
122.26
Price/Median PS Value 1.62
VRTX's Price/Median PS Value is ranked higher than
74% of the 979 Companies
in the Global Biotechnology industry.

( Industry Median: 1.97 vs. VRTX: 1.62 )
VRTX' s 10-Year Price/Median PS Value Range
Min: 0.32   Max: 4.78
Current: 1.62

0.32
4.78
Forward Rate of Return (Yacktman) -1.15
VRTX's Forward Rate of Return (Yacktman) is ranked higher than
85% of the 757 Companies
in the Global Biotechnology industry.

( Industry Median: -10.00 vs. VRTX: -1.15 )
VRTX' s 10-Year Forward Rate of Return (Yacktman) Range
Min: -7.5   Max: -3.4
Current: -1.15

-7.5
-3.4

Business Description

Industry: Biotechnology » Biotechnology
Compare:NVO, AMGN, GILD, BIIB, CELG » details
Traded in other countries:VX1.Germany
Vertex Pharmaceuticals was incorporated in Massachusetts in 1989. The Company is engaged in the business of discovering, developing and commercializing small molecule drugs for the treatment of serious diseases. The Company's two products are INCIVEK (telaprevir), which is approved for the treatment of patients with genotype 1 hepatitis C virus, or HCV, infection; and KALYDECO (ivacaftor), which is approved in the United States for the treatment of patients six years of age and older with cystic fibrosis, or CF, who have at least one copy of the G551D mutation in the cystic fibrosis transmembrane conductance regulator, or CFTR, gene. The Company has ongoing clinical programs involving drug candidates intended for the treatment of HCV infection, CF, rheumatoid arthritis, influenza and epilepsy. Its HCV clinical programs are focused on developing all-oral, interferon-free combinations of HCV drugs and drug candidates that have the potential to further improve treatment options available to patients with HCV infection. In its CF program, the Company is investigating the use of ivacaftor as a monotherapy in additional populations of patients with CF and combinations of ivacaftor and other CF drug candidates. As the Company markets and sells its approved products and advances its drug candidates through clinical development toward commercialization, it continues to build and maintain its supply chain and quality assurance resources. The Company currently relies on an international network of third parties to manufacture and distribute its drug candidates for clinical trials. The Company faces competition based on the safety and efficacy of its products, the timing and scope of regulatory approvals, the availability and cost of supply, marketing and sales capabilities, reimbursement coverage, price, patent protection and other factors. The Company's competitors are Abbott Laboratories, Achillion Pharmaceuticals, Inc., Boehringer Ingelheim, Bristol-Myers Squibb Company, Gilead Sciences, Inc., Hoffman-La Roche, Idenix Pharmaceuticals, Inc. and Jansse. The research, development, testing, manufacture, quality control, approval, labeling, packaging, storage, record keeping, promotion, advertising, distribution and marketing of its products and drug candidates are subject to extensive regulation by United States and foreign governmental authorities.
» More Articles for VRTX

Headlines

Articles On GuruFocus.com
Vanguard Health Care Fund Buys Vertex Pharmaceuticals, Zoetis Inc, , Sells Cerner Corporation, AbbVi Aug 02 2013 
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Weekly Top Insider Sells: GMCR, VRTX, CERN, and AGN May 14 2012 
Vertex Could Climb On New Drug, VX-222 Success Apr 21 2012 
Achillion Will Surge If New Drug Is Successful Apr 21 2012 
Columbia Management Fourth Quarter Letter with Comments on SWK, AGCO, CE, MCP, VRTX, DOLE, F, HAS, A Apr 10 2012 
Was Gilead's Acquisition of Pharmasset a Dose of Bad Medicine? Mar 05 2012 
4 Pharmaceuticals with Long and Short Opportunities Feb 28 2012 

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