Vertex Pharmaceuticals (VRTX) Surged on Increased Demand for its Cystic Fibrosis (CF) Franchise

Soumya Eswaran

Thu, Apr 10, 2025, 5:55 AM 3 min read

GreensKeeper Asset Management, an investment management company, released its first quarter 2025 investor letter. A copy of the letter can be downloaded here. Markets had a difficult start to 2025; with high levels of volatility in all of the main indices. The Value Fund finished the first quarter +3.0% net of fees and expenses net of fees and expenses. For the first quarter, the S&P/TSX retuned +1.5%, the S&P500 -4.2% and the Nasdaq –10.2%. The markets fell around 10% this past week as a result of President Trump's April 2 "Liberation Day" tariff announcement. In addition, you can check the fund’s top 5 holdings to determine its best picks for 2025.

In its first quarter 2025 investor letter, GreensKeeper Asset Management emphasized stocks such as Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX). Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a biotechnology company focusing on developing and commercializing therapies for treating cystic fibrosis (CF). The one-month return of Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was -4.10%, and its shares gained 20.51% of their value over the last 52 weeks. On April 9, 2025, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) stock closed at $482.30 per share with a market capitalization of $123.99 billion.

GreensKeeper Asset Management stated the following regarding Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its Q1 2025 investor letter:

"Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) was our second-best performer in the quarter, +20.4%. Growing demand for its Cystic Fibrosis (CF) franchise continued to generate substantial free cash flow. Vertex remains focused on diversifying its product portfolio and recently launched two new approved therapies: Alyftrek and Journavx. Alyfrtek is an improvement to VRTX’s CF portfolio, offering a once-daily dosing regimen that is far more convenient for patients. Importantly, it covers 31 additional rare mutations of CF for which no previous treatment existed. Journavx, a non-opioid pain signal inhibitor for acute pain, is beginning to ramp up sales as physicians gain confidence in its real-world efficacy and as VRTX advances reimbursement negotiations with payors. We believe that Journavx has the potential to become a blockbuster therapy, providing significant quality-of-life improvements to patients. In addition, VRTX is developing therapies for chronic pain that utilize a similar mechanism of action—blocking selective sodium channels—to inhibit the transmission of pain signals with little off-target effects. Success would be great news for shareholders, but more importantly, offer a powerful alternative to opioids and help combat the opioid crisis."