VRTX - Better Buy: Vertex Pharmaceuticals vs. Alexion Pharmaceuticals
Vertex Pharmaceuticals (NASDAQ: VRTX) is the leading drugmaker in the treatment of cystic fibrosis, a life-threatening genetic disease that causes infections to several organs, including the lungs and pancreas. All of the company's approved drugs treat CF's underlying causes, and its dominance in this market continues to spur strong top-line growth.
Alexion Pharmaceuticals (NASDAQ: ALXN), on the other hand, boasts a more diversified suite of products. Its top-selling selling drug is Soliris, which treats several conditions including the rare blood disease hemolytic uremic syndrome (HUS), and another blood disease called paroxysmal nocturnal hemoglobinuria (PNH). The company also markets Strensiq, which treats infantile and juvenile-onset hypophosphatasia, and Ultomiris, a PNH treatment.
Vertex has performed well on the stock market this year, with a 33% gain that handily outpaced the S&P 500's average 25% rise. Alexion, by contrast, has gained just 12%. But for investors considering these pharma stocks today, the question is which is best positioned deliver the better performance from here.