Vertex and Amgen Deliver Strong Clinical Trial Results Amidst Patent Cliffs
Two pharmaceutical companies, Vertex Pharmaceuticals and Amgen, have delivered strong clinical trial results for promising candidates. Both companies have robust businesses and strong medium-term prospects. Vertex's business looks healthy due to its medicines treating cystic fibrosis (CF), a rare lifelong illness with no cure. The company generates consistent revenue and earnings thanks to these products, which grant it strong pricing power and a predictable revenue stream.
In the second quarter, Vertex's top line increased by 12% year over year to $3.33 billion, while its earnings per share climbed 8% year over year to $4.31. The company has been slowly diversifying its lineup, but it also has exciting pipeline candidates like inaxaplin, which is being tested for APOL1-mediated kidney disease and type 2 diabetes.
Amgen has started facing biosimilar competition in the U.S. for denosumab, a medicine approved for several bone-related conditions, but the company is navigating this patent cliff well. In the second quarter, Amgen's revenue increased by a healthy 10% year over year to $10.1 billion.