Renaissance Technologies Portfolio: Top 10 Stock Picks

7. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)

Stake Value as of Q4 2024: $562,656,064

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) is an American biotechnology company that uses scientific innovation to develop transformative medicines for patients with serious diseases. It is one of the top stock picks from the Renaissance Technologies portfolio.

In January, the company received FDA approval for JOURNAVX, a medication to treat adults with moderate-to-severe acute pain. This can be a major catalyst of growth for Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) as it can open new opportunities to build solid business beyond cystic fibrosis (CF) treatments. The non-opioid oral pain signal inhibitor can be a valuable addition to the healthcare industry, offering patients an alternative to highly addictive opioids, as over 80,000 people die each year due to overdoses involving opioids.

Analysts see immense potential in JOURNAVX to become a blockbuster drug with peak annual revenues of approximately $5 billion over the next five to six years. Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) also has several other treatments in its pipeline, including those aimed at treating diabetes, complex kidney diseases, and other conditions, which positions it well for profitable growth over the long run.

During its Q4 2024 earnings call on February 10, Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) reported a 12% increase in its full-year product revenue to $11.02 billion. The company is anticipating continued growth in fiscal 2025 with the approval of JOURNAVX, the launch of its fifth CF medicine, ALYFTREK, and the continuing global acceptance of CASGEVY, a therapy used to treat patients with beta-thalassemia and sickle cell disease.

Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX)’s share price has surged by 17% year-to-date, with Wall Street analysts projecting a further 7% uptick, on average, in its trading value. According to Insider Monkey’s database for Q4 2024, 68 hedge funds held stakes in the company, up from 55 at the end of the third quarter.