5 Biotech Stocks with Huge Potential

1. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Number of Hedge Fund Holders: 62

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is a pharmaceutical company focused on creation of transformative medicines for people with serious and life-threatening diseases. It discovered and developed the first medicines to treat the underlying cause of cystic fibrosis, a rare, life-threatening genetic disease.

On February 13, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) announced that the European Commission has granted conditional marketing authorization to CASGEVY for the treatment of Sickle Cell Disease and Transfusion-Dependent Beta Thalassemia (TDT). Previously, the company received FDA approval for CASGEVY for the treatment of TDT in patients 12 years and older.

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) ranks #1 on our list of 10 biotech stocks with huge potential. Its shares were widely owned by hedge funds, as of Q4 2023, with 62 prominent hedge funds tracked by Insider Monkey holding its shares valued at $2.5 billion.

Harding Loevner, an asset management company, made the following comments about Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) in its “Global Equity Strategy” Q4 2023 investor letter:

“Unlike most drug developers, which focus on mitigating symptoms of an illness, Vertex seeks to understand and address the causal biology of a disease more fully. This approach has helped the company establish a wide lead in treating cystic fibrosis (CF), a rare disease that causes mucus buildup in organs such as the lungs. Vertex’s research and treatments have targeted the root cause of CF, which is that a particular protein becomes misfolded and unable to move chloride out of a cell, resulting in an imbalance between salt and water. Its scientists have been able to do this by working with the lung cells of real CF patients, an advantage over using engineered animal cells to simulate the disease-causing mechanism to determine which drug candidate is most promising for humans.”

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