Pfizer (NYSE: PFE) continues to grapple with declining coronavirus product sales and lackluster financial performance. While the pharmaceutical giant is experiencing revenue growth, it hasn’t fully regained investor confidence. Pfizer has made strides with new approvals and acquisitions, expanding its product line and pipeline. However, investors might find more compelling opportunities in higher-performing peers. This article explores two biotech stocks, Vertex Pharmaceuticals (NASDAQ: VRTX) and Viking Therapeutics (NASDAQ: VKTX), that are outpacing the market and potentially offer stronger investment prospects than Pfizer.
Table Content:
Vertex Pharmaceuticals: Dominating Cystic Fibrosis and Beyond
Vertex Pharmaceuticals has achieved significant milestones in the past year. As the market leader in cystic fibrosis (CF) treatments, the company has secured new approvals and reported positive clinical trial results.
A key achievement was the November 2023 approval of Casgevy, a gene-editing therapy for rare blood disorders developed in collaboration with CRISPR Therapeutics. Casgevy has since gained approval in multiple regions, including the European Union, the U.S., and several other countries.
Furthermore, Vertex reported promising Phase 3 results for a next-generation CF combination therapy and a potential acute pain medication, both potentially on track for approval within the year. The company’s financial performance remains robust. In Q3, revenue grew by 12% year-over-year to $2.8 billion, with earnings per share increasing to $4.01 from $3.97 in the same period last year.
Vertex estimates that 20,000 eligible patients in its target markets haven’t yet begun treatment for CF. Additionally, Casgevy, priced at $2.2 million per treatment course in the U.S., targets a potential patient population of 58,000. The company’s foray into acute pain treatment could address a market of millions. These factors, combined with a promising pipeline of drug candidates, position Vertex for sustained growth and continued strong performance.
Viking Therapeutics: Riding the Wave of Weight Loss Innovation
Viking Therapeutics has emerged as a biotech industry standout this year, driven by the potential of VK2735, a GLP-1 weight loss drug candidate. The burgeoning anti-obesity market, projected for substantial growth in coming years, presents a significant opportunity for Viking. VK2735 demonstrates the company’s commitment to developing novel weight loss therapies.
Beyond VK2735, Viking’s pipeline includes VK2809, a promising treatment for non-alcoholic steatohepatitis (NASH) that has shown encouraging results in Phase 2 studies. VK0214, a potential therapy for X-linked adrenoleukodystrophy, a rare genetic disorder affecting the nervous system, recently completed a Phase 1b trial.
With planned Phase 3 and Phase 2 studies underway, positive results could further propel Viking’s stock. The company’s attractive position in the lucrative weight loss market also makes it a potential acquisition target for larger pharmaceutical companies. Despite inherent risks, Viking Therapeutics holds significant potential for substantial returns for long-term investors.
Pfizer, Vertex, or Viking: Weighing the Investment Options
While Pfizer’s depressed stock price and 6.5% dividend yield might seem appealing, Vertex Pharmaceuticals presents a stronger case with its robust product lineup, financial performance, innovative capabilities, and promising pipeline. Viking Therapeutics, although carrying higher risk, offers the greatest potential for substantial returns. For long-term investors, Vertex Pharmaceuticals stands out as the most compelling choice among the three. However, Pfizer’s rebuilding efforts and dividend payout warrant consideration.
