Motley Fool columnist Brendan Coffey picks Vertex Pharmaceuticals over Bristol Myers Squibb as the better pharma stock for 2027. He calls Vertex the company "firing on all cylinders." Vertex grew 2025 revenue 9.6% to about $12.1 billion, with a net margin of 32.7%. Bristol Myers' revenue slipped 0.2% to about $48.2 billion, with a net margin of 14.6%. Bristol Myers trades at a forward price-to-earnings ratio of 9.8x, against 29.8x for Vertex. Coffey says the low multiple reflects continued difficulty ahead. Vertex expects 2026 sales to rise about 10% to $13.3 billion. Its drug candidate povetacicept could reach peak annual sales of $4 billion to $7 billion, according to Argus.

Vertex Pharmaceuticals: costs now outgrow sales, and the price needs A second Vertex. Summary. * Vertex Pharmaceuticals is rated Sell, with the fair value estimated at $398.25 versus a $530.76 share price. * VRTX's costs are outpacing sales growth, with Q4 2026 profit projected to decline 13% year-over-year per company guidance. * 95% of VRTX revenue comes from cystic fibrosis drugs, with new franchises growing but not yet material to overall earnings. * The ALYFTREK royalty arbitration and rising expenses pose downside risks; current valuation requires a decade of ~10% annual profit growth. Vertex Pharmaceuticals Incorporated (VRTX) is a healthy business, but its costs now outgrow its sales and the current price needs a decade of fast profit growth to be justified. To be fair, the business is still

Vertex Pharmaceuticals could be among the best biotech stocks to own through 2031, according to a Motley Fool analysis. The drugmaker has outperformed the broader market over the past five years, though some investors worry about its lack of diversification. Third-quarter revenue rose 12% year over year to $3.44 billion, with cystic fibrosis products making up $3.3 billion. Sales of newer Alyftrek grew almost 186% to $705.8 million, while Trikafta fell 8% to $2.4 billion. Its key cystic fibrosis patents do not expire until the late 2030s. Vertex is also diversifying. Sales of gene-editing therapy Casgevy grew almost 487% to $99.2 million, and the company closed its $10 billion purchase of Crinetics Pharmaceuticals in September. It awaits US approval of povetacicept for a kidney disease.