Vertex’s (VRTX, Financial) share price climbed 31.5%, adding 0.7% to the Fund’s total return. Vertex’s cystic fibrosis business continues to grow nicely, with the company gaining approval in new geographies and for treatment of younger age groups. Vertex is in late-stage trials for its next-generation triple-combination therapy for cystic fibrosis, as well as for a potential mRNA delivery mechanism with Moderna. Vertex also had positive pipeline news on its sickle cell and beta thalassemia partnership with CRISPR and phase II acute pain data. We continue to think Vertex is an innovative biotechnology company with a strong management team and attractive cash position. The stock’s valuation should move higher given the company’s dominant cystic fibrosis franchise and diversified pipeline.
From the Parnassus Value Equity Fund (Trades, Portfolio)'s fourth-quarter 2022 commentary.
