Vertex Pharmaceuticals vs Moderna: Why One Biotech Outshines the Other Right Now

The Pandemic Winner That Lost Its Spark

Moderna (NASDAQ: MRNA) rode an incredible wave during the early pandemic years. The coronavirus vaccine opportunity catapulted the company from clinical trials to profitability seemingly overnight, generating billions in revenue. Yet the narrative has shifted. Vaccine demand declined sharply, and the RSV vaccine launch—positioned as the next major growth driver—underperformed expectations. While the stock rebounded with a 30%+ climb over the past month, the company still faces significant execution risks: achieving cash breakeven by 2028 and successfully launching new pipeline products remain uncertain milestones.

For risk-averse investors, this level of uncertainty presents a challenge.

Why Vertex Pharmaceuticals Tells a Different Story

Enter Vertex Pharmaceuticals (NASDAQ: VRTX), a biotech player that appeals to both conservative and growth-oriented investors. The company has built something Moderna is still pursuing: a proven, sustainable competitive moat.

Vertex dominates the cystic fibrosis (CF) market globally through its revolutionary CFTR modulators—drugs that correct defective proteins produced by the CFTR gene. The company’s latest innovations, Trikafta (approved 2019) and Alyftrek (approved 2024), address nearly 95% of CF patients, with Vertex developing candidates for the remaining population. This leadership position is reinforced by intellectual property protection extending well into the next decade.

The financial results speak volumes: Vertex’s total revenue climbed 11% to over $3 billion in the most recent quarter, with CF products driving sustained momentum.

Expanding Beyond Cystic Fibrosis

Vertex isn’t resting on CF success. Recent approvals of Casgevy for blood disorders and Journavx for pain management represent genuine market breakthroughs. Journavx, in particular, fills a critical gap—it’s a non-opioid pain treatment for cases where over-the-counter options prove ineffective but prescription opioids pose addiction risks.

The market response has been striking: from March through mid-October, physicians filled over 300,000 Journavx prescriptions. Both new products carry potential to contribute billions to Vertex’s revenue pipeline.

Valuation and Long-Term Track Record

Over five years, Vertex stock has surged nearly 100%, gaining approximately 15% this year. This dual performance—both long-term and recent strength—demonstrates consistent execution. The stock trades at 25x forward earnings (down from 27x months prior), which represents fair value for a company with market-leading positions and an expanding product portfolio. The price isn’t bargain-basement, but it’s rational compensation for Vertex’s competitive advantages.

A robust pipeline of CF and non-CF candidates provides additional confidence in future growth catalysts.

The Bottom Line

Moderna presents a recovery narrative that hinges on executing future milestones. Vertex, by contrast, has already proven its ability to generate consistent earnings, dominate its specialty markets through CFTR modulators, and expand into adjacent high-value treatments. While no stock guarantees perpetual outperformance, Vertex’s financial foundation and product breadth position it as the more compelling biotech investment today compared to Moderna.