Got $500? 1 Biotech Stock to Buy and Hold Forever

Core Viewpoint - Vertex Pharmaceuticals is highlighted as a strong investment opportunity due to its solid financial performance, significant market capitalization, and promising drug pipeline, particularly in the cystic fibrosis (CF) market and other therapeutic areas. Financial Performance - Vertex's current share price is below $450, allowing for investment with a minimum of $500 [2] - The company expects to generate revenue between $10.8 billion and $10.9 billion this year, with nearly 93% of sales coming from its CF drug Trikafta/Kaftrio [3] - In Q3 2024, Vertex reported earnings of approximately $1.05 billion, reflecting a net profit margin of almost 38% [4] - As of the end of September, Vertex had cash, cash equivalents, and marketable securities totaling $11.2 billion, providing ample resources for acquisitions or stock buybacks [5] Drug Pipeline and Market Potential - Vertex is anticipating FDA approval for the vanzacaftor triple-drug combination therapy by January 2, 2025, which is expected to enhance its CF treatment portfolio [6] - The commercial launch of Casgevy, a gene-editing therapy for sickle cell disease and transfusion-dependent beta-thalassemia, is gaining traction with 45 authorized treatment centers globally as of mid-October [7] - Another potential FDA approval for suzetrigine, targeting moderate-to-severe acute pain, is expected by January 30, 2025, with additional studies for peripheral neuropathic pain [8] - Vertex's pipeline includes three other pivotal programs targeting APOL1-mediated kidney disease, IgA nephropathy, and type 1 diabetes, with significant market opportunities [9] Competitive Position and Future Outlook - Vertex's dominance in the CF market is expected to remain secure with U.S. patents for Trikafta/Kaftrio in force through 2037 [10] - The company is expanding its focus to larger patient populations beyond CF, targeting acute pain, neuropathic pain, and type 1 diabetes, which present substantial market opportunities [11] - Vertex Pharmaceuticals is positioned as an exception among biotech stocks for long-term investment due to its robust pipeline and market leadership [11]