Vertex Pharmaceuticals Incorporated (VRTX Quick QuoteVRTX - Free Report) stock has declined 8.9% in the past three months.

The deterioration was due to soft first-quarter results, slower-than-expected uptake of its newer drugs as well as CF drugs and some recent pipeline setbacks. A lot of this price decline could be because of the uncertainty around tariffs and trade production measures, which muted economic growth. The escalating geopolitical tensions in various parts of the world have also resulted in broader financial woes.

Vertex’s recent price decline has left investors wondering if they should sell the stock now or hold a little longer. Let’s understand the company’s strengths and weaknesses to better analyze how to play VRTX stock amid this scenario.

Consistent Rise in VRTX’s CF Product Sales

Vertex holds a dominant position in the cystic franchise (CF) market. Its CF sales continue to grow, driven by the demand growth of Trikafta/Kaftrio in younger age groups. While in the near term, expansion to younger age groups should continue to drive CF sales growth, the launch of Alyftrek, a next-in-class triple combination regimen, should drive growth in the medium term.

However, there are some concerns regarding Vertex’ CF sales slightly slowing down.

Vertex’s Sluggish New Products Sales May Improve in H2

 Vertex has gained approval for two new products, its novel non-opioid pain medicine Journavx (suzetrigine) and its fifth CF medicine, Alyftrek, in the past few months. Vertex and partner CRISPR Therapeutics’ (CRSP Quick QuoteCRSP - Free Report) one-shot gene therapy, Casgevy, was approved for two blood disorders, sickle cell disease and transfusion-dependent beta-thalassemia, in multiple regions in late 2023/early 2024.

Alyftrek (vanza triple), Vertex’s new once-a-day oral triple combination medicine for treating people with CF aged six years and older, has the potential to provide better patient benefit than Trikafta and become a new standard-of-care treatment in CF. It can possibly treat CF patients who have discontinued Trikafta or other Vertex CF medicines. It can improve dosing (once daily), lower the royalty burden and extend patent protection from 2037 for Trikafta into 2039 for Alyftrek.

Journavx (suzetrigine), Vertex’s non-opioid NaV1.8 pain signal inhibitor, was approved in the United States in January 2025 for the treatment of moderate-to-severe acute pain. Vertex is also conducting a pivotal phase III program of suzetrigine in diabetic peripheral neuropathy, a form of peripheral neuropathic pain caused by damage to nerves. Vertex has completed a phase II study of VX-548 in patients with painful lumbosacral radiculopathy, another form of peripheral neuropathic pain, and plans to advance the candidate into pivotal development. Vertex believes suzetrigine has the potential to transform the treatment paradigm of pain, both acute and neuropathic. Pain is an area with limited treatment options, mostly highly addictive opioid-based medications.

Casgevy is the first-ever CRISPR/Cas9-based therapy to be approved anywhere in the world. Vertex and CRISPR Therapeutics believe that Casgevy has the potential to be a one-time functional cure for SCD and TDT patients, with an estimated patient population of approximately 60,000 across the countries where Casgevy is approved. Vertex is securing reimbursement and access to Casgevy globally.

However, the uptake of new drugs, Casgevy, Alyftrek and Journavx, has been slow, with more material contribution expected in the second half.

Casgevy revenues are expected to ramp up in the second half, as more patients are treated in geographies where the drug has secured regulatory approval and reimbursement. Journavx sales are expected to pick up in the second half of the year as the product’s uptake accelerates through patient assistance and supply/stocking initiatives in the first half.

Vertex’s Robust Mid-Stage Pipeline

While Vertex’s main focus is on the development and strengthening of its CF franchise, ithas a rapidly advancing mid- to late-stage pipeline in other disease areas beyond CF, such as acute and neuropathic pain, APOL1-mediated kidney disease (AMKD), IgA nephropathy (IgAN), primary membranous nephropathy (pMN) and other B-cell-mediated diseases. Many of these candidates represent multibillion-dollar opportunities. Four of these programs are in pivotal development. Three of these phase III programs are on track to complete enrollment this year, setting the stage for several potential regulatory filings next year and potential new drug approvals in a couple of years.

Last year’s Alpine acquisition added povetacicept to Vertex’s pipeline, which Vertex believes has a “pipeline in a product” potential. Povetacicept is designed to target two proteins, namely BAFF and APRIL, which are jointly responsible for the cause of multiple serious autoimmune diseases. A phase III study on povetacicept for the treatment of IgAN is ongoing with a potential filing in the first half of 2026. Vertex plans to initiate a pivotal phase II/III study of povetacicept in pMN in 2025. Data from these studies is expected later in 2025.

However, the company faced a couple of setbacks related to its pipeline recently. In March 2025, Vertex discontinued the development of VX-264 (cells device program) as a phase I/II study on the candidate failed to meet its efficacy endpoint.

Earlier this year, Vertex announced a temporary pause in the development of VX-522, its mRNA therapeutic, VX-522, which it is developing in partnership with Moderna (MRNA Quick QuoteMRNA - Free Report) for approximately 5,000 people with CF who do not make CFTR protein and cannot benefit from its CFTR modulators. A single ascending dose (SAD) portion of a phase I/II clinical study on VX-522 is complete, while a multiple ascending dose (MAD) portion of the same is on a temporary pause.

VRTX’s Stock Price, Valuation and Estimates

Vertex stock has risen 9.6% year to date against the industry’s 1.2% decline.  The stock has also outperformed the sector and S&P 500 index, as seen in the chart below.

VRTX Stock Outperforms Industry, Sector & S&P 500

Image Source: Zacks Investment Research

The stock is trading at a premium to the industry, as seen in the chart below.

VRTX Stock Valuation

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for 2025 earnings has risen from $17.69 to $17.82 per share over the past 60 days, while that for 2026 has risen from $19.84 to $20.06.

VRTX Estimate Movement

Image Source: Zacks Investment Research

Stay Invested in VRTX Stock

Despite the price decline in the past three months, we believe Vertex is a good stock to have in one’s portfolio, considering its strong overall financial performance and robust pipeline progress. Vertex faces minimal competition in the CF franchise. CF sales are expected to remain strong despite a slight slowdown in the growth rate. Casgevy and Journavx provide the necessary diversification from the CF franchise. The company’s dependence on the CF franchise for growth was a concern for several analysts, but it is gradually resolving. In 2025, Vertex expects sales to grow around 8%, driven by continued CF franchise growth, including contributions from Alyftrek, the continued uptake of Casgevy in approved regions and initial sales from Journavx, primarily in the second half.

Though VRTX stock currently looks expensive, we believe that it has growth potential. Those who already own the stock may retain it for some time to see if its CF sales continue to rise and if Casgevy, Journavx and Alyftrek’s sales improve in the second half. Consistently rising estimates also reflect analysts’ optimistic outlook for future growth in profits. Vertex presently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.