Vertex PharmaceuticalsBSP:VRTX34 87 Gross Margin % is 86.85% as of Mar. 2026, which is 1% below its 10-year median of 87.43. GuruFocus rates BSP:VRTX34 with a GF Score™ of 87/100 and a GF Value™ of R$614.03 (Fairly Valued). The stock has 4 warning signs investors should review. Among 734 Biotechnology companies, Vertex Pharmaceuticals ranks better than 79.02% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Vertex Pharmaceuticals had a gross margin of 86.85% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Vertex Pharmaceuticals Gross Margin % Related Terms
Vertex Pharmaceuticals Gross Margin % Historical Data
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The historical data trend for Vertex Pharmaceuticals's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:VRTX34 vs REGN, ALNY, RVMD: Gross Margin % Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Vertex Pharmaceuticals Gross Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Vertex Pharmaceuticals (BSP:VRTX34) has a Gross Margin % of 86.85% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Vertex Pharmaceuticals and its competitors. This is near median its historical median of 87.43. Over the past decade, Vertex Pharmaceuticals' Gross Margin % has ranged from 86.11 to 88.95. According to the industry distribution chart, Vertex Pharmaceuticals ranks #154 out of 734 companies in the Biotechnology industry, placing it in the top 21%.
Is Vertex Pharmaceuticals' Gross Margin % too high?
Vertex Pharmaceuticals' current Gross Margin % of 86.85% is near median its 10-year median of 87.43. Over the past 10 years, this metric has ranged from a low of 86.11 to a high of 88.95. The Biotechnology industry median Gross Margin % is 60.80. Vertex Pharmaceuticals' value of 86.85% is 42.9% above this industry median. Based on the distribution chart, Vertex Pharmaceuticals ranks #154 out of 734 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. Overall, Vertex Pharmaceuticals has a GF Score™ of 87/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vertex Pharmaceuticals' Gross Margin % compare to REGN and ALNY?
According to the Biotechnology industry distribution chart, Vertex Pharmaceuticals ranks #154 out of 734 companies for Gross Margin %. This places Vertex Pharmaceuticals in the top 21% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 60.80. Vertex Pharmaceuticals' value of 86.85% is 42.9% above this benchmark. Historically, Vertex Pharmaceuticals' own Gross Margin % has ranged from 86.11 to 88.95 over the past decade. While the company's 10-year median is 87.43 vs. the industry median of 60.80, Vertex Pharmaceuticals has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Biotechnology company?
The median Gross Margin % among Biotechnology companies is 60.80, based on 734 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Vertex Pharmaceuticals's current Gross Margin % of 86.85% is 42.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Vertex Pharmaceuticals and its competitors. For the Biotechnology industry, the median Gross Margin % is 60.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Vertex Pharmaceuticals's current Gross Margin % is 86.85%, which is near median its own 10-year median of 87.43. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vertex Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Vertex Pharmaceuticals (BSP:VRTX34) is currently considered Fairly Valued. The stock's GF Value™ is R$614.03, compared to a current price of R$607.20 — trading 1.1% below its estimated fair value. The current Gross Margin % is 86.85%, which is near median its 10-year median of 87.43 and 42.9% above the Biotechnology industry median of 60.80. Vertex Pharmaceuticals' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Vertex Pharmaceuticals (BSP:VRTX34), the current Gross Margin % is 86.85% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Vertex Pharmaceuticals (BSP:VRTX34) Overvalued in 2026?
Based on GuruFocus' analysis, Vertex Pharmaceuticals stock appears to be undervalued.
The current stock price of R$607.20 is trading 1.1% below its estimated GF Value™ of R$614.03.
GuruFocus considers Vertex Pharmaceuticals to be Fairly Valued.
Key valuation signals for BSP:VRTX34:
Gross Margin %: 86.85% (near median its 10-year median of 87.43)
GF Value™: R$614.03 vs. price of R$607.20 (1.1% below fair value)
Industry Position: 42.9% above the Biotechnology median (#154 of 734)
No single metric tells the full story. See the BSP:VRTX34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio, and Alyftrek for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease, and Journavx, a non-opioid pain medication approved for the treatment of moderate-to-severe acute pain in adults. Additionally, Vertex is evaluating small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
87GF Score
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