Is Vertex Pharmaceuticals Stock a Buy?

Vertex Pharmaceuticals (NASDAQ: VRTX) hit paydirt when the company's first medicine to treat the underlying causes of cystic fibrosis (CF) -- a rare condition that affects several internal organs like the lungs -- was approved by the U.S. Food and Drug Administration in 2012. Since then, the company has strengthened its monopoly on the CF market by developing several new drugs, and its shares are up by more than 500% as a result.

However, it seems Vertex's assumed continued dominance in the CF market is already being factored into its stock price: The company currently trades at 33 times future earnings. Will Vertex continue to deliver market-beating returns? Or are the company's best days in the rearview mirror?

Image Source: Getty Images.

Source Fool.com