This stock may not be foolproof, but it seems poised for significant gains in the years to come.
I’m not a huge fan of the phrase “growth stocks.” I mean, all investors want their investments to grow, right? But while some stocks are textbook examples of strong growth, I get that not every stock can hit that mark.
I’ve got a few favorites that fit this mold. The growth stocks I’m excited about this November are ones I’ve held onto for years, and I genuinely think they’re set to outperform the market in the long run.
Three Ways to Grow
Vertex Pharmaceuticals There are three solid avenues for growth here, starting with the biotech giant’s strongest performer: its cystic fibrosis (CF) franchise.
Vertex has five approved CF treatments, but Kaftrio/Trikafta is definitely the standout. In the second quarter of 2025, this drug accounted for a whopping 86% of the company’s revenue. However, year-over-year sales growth for Kaftrio/Trikafta was just 4%. So, is CF really the easiest path for Vertex to grow?
In December 2024, Vertex received FDA approval for its latest CF therapy, Alyftrek. This new drug is expected to take a big chunk of Kaftrio/Trikafta’s market share thanks to its effectiveness and once-daily dosing. While it may not dramatically boost Vertex’s CF revenue, it does come with a lower royalty burden, which I think is aimed at increasing profits.
The second path for Vertex taps into a product line that goes beyond CF, featuring two innovative therapies. Kasgevy, the first approved CRISPR gene editing therapy, targets two rare blood disorders: sickle cell disease and transfusion-dependent beta-thalassemia. I’m particularly optimistic about Journavx, a non-opioid medication that offers safe and effective acute pain relief. I have a feeling that Journavx could really be a blockbuster for Vertex.
If all goes well, Vertex’s third potential growth area might even outshine the first two. The company has a promising pipeline lined up. Next year, Vertex intends to seek global regulatory approval for Dimisrecel as a one-time functional treatment for severe type 1 diabetes. Initially, around 60,000 patients may benefit from this therapy. They’re also hoping to fast-track FDA approval for pobetacicept to treat IgA nephropathy, a kidney disease affecting 300,000 people in the U.S. and Europe.
And there’s more. Vertex is looking into inaxaprine in a Phase 3 trial for about 250,000 patients suffering from APOL1-mediated kidney disease. Plus, there are advanced studies on the horizon for additional approvals of Jernavux to treat diabetic peripheral neuropathy—impacting over 2 million patients—and pobetacicept for primary membranous nephropathy, which affects around 250,000 patients.
Altogether, Vertex’s clinical trials cover potential treatments for over 2.75 million people, which is pretty significant when you consider that an estimated 109,000 people globally are living with CF.
Two Reliable Aspects
What gives me comfort about Vertex? Well, first off, the business model isn’t likely to falter during an economic slump. Vertex essentially has a monopoly in treating the underlying cause of CF. Doctors are unlikely to halt prescriptions for Kaftrio/Trikafta or Ariftrec, even in tough economic times. They’ll continue to prescribe Vertex’s other approved treatments as well, so I doubt economic factors will disrupt the business too much.
Secondly, I find it reassuring that Vertex is not facing an imminent patent cliff. Key patents for Kalydeco and Symdeko/Symkevi related to CF therapy will expire in 2027. But don’t forget: Vertex’s major revenue source has been Kaftrio/Trikafta, with its patent lasting until 2037. The patent for Alyftrek will expire in 2039, followed by Journavx in 2040.
One Major Concern
That said, Vertex does confront one significant risk that all pharmaceutical companies face. There’s always a chance that pipeline candidates could fail during clinical trials or not gain regulatory approval, even if they seem promising.
Still, I don’t find this risk particularly worrisome. Vertex has a solid track record with late-stage programs, and given the number of strong candidates in its pipeline, the company should be able to weather one or two setbacks.
So, is Vertex Pharmaceuticals completely bulletproof? Not exactly. But with a bit of luck, I believe this growth stock could turn out to be a big winner in the coming years.
