Stock Strategist: Vertex Is a Rare-Disease Powerhouse

[Morningstar Logo]( [Company Site]( [Company News]( [Membership]( [Portfolio]( [Stocks]( [Options]( [Funds]( [ETFs]( [Markets]( [Tools]( [Personal Finance]( [Discuss]( Stock Strategist Vertex Is a Rare-Disease Powerhouse The shares currently look undervalued ahead of further drug approval. [tab_bar] by Kelsey Tsai, CFA | 11/13/2017 5:30:00 PM After [Vertex Pharmaceuticals]( [VRTX]( third-quarter results showed robust uptake of cystic fibrosis drugs Orkambi and Kalydeco, we raised our fair value estimate to $175 per share from $170. Our updated 2017 sales estimates fall in line with management’s new outlook: $1.29 billion-$1.32 billion for full-year Orkambi sales (from $1.1 billion-$1.3 billion) and $810 million-$830 million for Kalydeco sales (from $770 million-$800 million). We think the company’s drug portfolio was significantly derisked following the earlier news of positive triple-combination drug data for harder-to-treat cystic fibrosis patients with heter ozygous F508del mutations. We believe Vertex’s monopoly in the cystic fibrosis market merits a narrow economic moat rating, and we think the shares are currently undervalued. To read more, click [here](. Sponsored Links [Buy a Link Now]( New: ETF Managed Portfolios Center On [MorningstarAdvisor.com]( Tap into the industry's best source of information on ETF strategies for financial advisors. See key performance data, screen for specific strategy attributes, and learn more about this fast-growing area of the investment marketplace. [Click to get started](. Free Issue | Morningstar's Stock Newsletter >> Morningstar StockInvestor is celebrating more than 10 successful years of high-quality stock investing. Its two real-money portfolios have outperformed the S&P 500 since 2001. [Get new ideas for the core of your stock portfolio]( ). Search Most Recent Articles [My Investing Do's and Don'ts]( [Stericycle Sell-Off Overdone]( [The Best (and Worst) Type of Fund Company]( Latest Analyst Reports [VEON]( [Hain Celestial Group]( [Adidas]( [Munich Re]( [O'Reilly Automotive]( ABOUT OUR EMAIL TO UNSUBSCRIBE this email address to the Stock Strategist newsletter, please click "reply" and then click "send." This will unsubscribe only this email address to this specific newsletter. All subscription changes will take effect within one business day. Replies are not read by individuals, so please do not use this for queries about Morningstar.com. If you have questions about Morningstar.com or your membership, send a note to [joe@morningstar.com](mailto:%20joe@morningstar.com). ABOUT OUR PRIVACY POLICY Please [click here]( to learn about Morningstar's privacy policy. (c) Copyright 2017. Morningstar, Inc. 22 West Washington Chicago, Illinois, 60602 All rights reserved.