Vertex Pharmaceuticals: Buy at the High?

Vertex Pharmaceuticals (NASDAQ: VRTX) has climbed in the double digits this year and is trading around its highest ever. There are plenty of reasons for this top performance. The company continues to generate billions from its market-leading cystic fibrosis (CF) treatments, and it may be about to take a major step outside this specialty area: Vertex is awaiting regulatory decisions on exa-cel, its treatment candidate for blood disorders.

The big biotech also is moving forward with many other exciting programs that could result in major earnings growth down the road. So, it's no surprise a lot of investors have been getting in on this story. But, as we look at the stock's level today, should we think twice before investing, or is it worth buying this biotech player at the high? Let's find out.

First, a look at Vertex's core business, and that's CF. In the illness, a faulty protein doesn't properly regulate the flow of water and chloride in cells of various organs, resulting in devastating symptoms. The company sells four different CFTR modulators meant to fix this faulty protein. Vertex's top seller, Trikafta, generated $7.6 billion in sales last year, and sales potential continues to grow as the product wins approval in new age groups and in various countries.

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Source Fool.com