Australian Billionaire Kerr Neilson is Selling These 5 Stocks

2. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Number of Hedge Fund Holders: 45

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a Massachusetts-based biotech company that is pioneering the treatment of life-threatening genetic diseases like cystic fibrosis (CF).

According to experts, the size of the cystic fibrosis market stands at $9.8 billion as of 2022. Through its four approved cystic fibrosis transmembrane conductance regulators (CFTR), Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) has been able to control nearly 80% of the market. However, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is over-reliant on CF products and does not see the launch of a major drug that could result in revenue diversification in the next two years. Furthermore, the company does not have a deep pipeline of products in phase three trials like some of its competitors.

Here’s what Harding Loevner said about Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its Q4 2021 investor letter:

“In Health Care, the disappointing share price performance of Wuxi AppTec and Wuxi Biologics was partially offset by the strong rebound in Vertex Pharmaceuticals’ share price. Vertex reported encouraging Phase 2 results for its drug candidate to treat a rare form of kidney disease, as well as positive pilot data for the first patient treated with its groundbreaking stem cell therapy for Type 1 diabetes. These studies’ results were all the more encouraging as they validated the company’s strategy to deploy its unique drug development approach beyond its cystic fibrosis franchise.”

Overall, 45 funds held a stake in Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) as of Q2 2022.