Sep. 3 at 8:11 PM
Citigroup analyst Geoff Meacham has identified Vertex Pharmaceuticals as his top biotechnology pick, maintaining a Buy rating and a
$585 price target as the company expands beyond cystic fibrosis through strategic acquisitions.
Vertex recently completed its
$10 billion acquisition of Crinetics Pharmaceuticals, or
$8.8 billion net of acquired cash, adding endocrinology as a new strategic growth pillar. The deal provides immediate revenue through PALSONIFY, an oral daily treatment for acromegaly, with Citi forecasting
$700 million in sales by 2030. Vertex also gains atumelnant, which is in mid- and late-stage development for several endocrine disorders.
The acquisition strengthens Vertex's diversification across cystic fibrosis, hematology, pain, nephrology and endocrinology. The company expects the transaction to become accretive to non-GAAP operating income in 2029.
$VRTX