Vertex Pharmaceuticals develops therapies to address cystic fibrosis and other diseases. The company was founded in 1989 in Cambridge, Massachusetts and has 6,100 employees. It has research programs and facilities in the U.S., the U.K., and Canada. The shares are a component of the S&P 500.

Stocks rode a roller coaster on Tuesday as the risk-off trade continues. While the major indices all fell, they cut their intraday losses significantly. The S&P 500 (SPX) gave back 0.5% -- but was down as much as 1.3% in the morning. The Nasdaq fell 1.4%, recovering from a 2.2% drawdown earlier in the session, and the Nasdaq 100 (QQQ) dropped 1.2% after being down 2%. The small-cap and mid-cap indices did little and market breadth was actually slightly positive on the day. Bitcoin was the big loser, plunging 6% and breaking below a trading range that has been in place for three months. Still, it did bounce after hitting its 200-day exponential moving average (EMA) near $86,000. If we see downside follow-through, things could get ugly as the size of the recent range was $19,000. Communication Services (XLC) fell 1.5%, led by weakness in the trillion-dollar market-cap stocks of GOOGL (-2%) and META (-1.6%). Information Technology (XLK) gave back 1.3% as semiconductors fell 2.6%. NVDA declined almost 3%, while AVGO dipped 2.6%. Sector strength was seen in the defensive Consumer Staples (+1.4%) and Healthcare (+0.9%), in addition to Real Estate (+1.1%) and Materials (+0.8%). The SPX did bounce off its lower 20-day price channel, the weekly middle price channel, and the important 21-week EMA. The index closed slightly below its middle weekly Bollinger Band at 5,966 -- and additional downside follow-through will imply at least a test of the lower band at 5,765. Chart support from the recent low is at 5,773 and a test of the last breakout area would be down at 5,650.

Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease. Additionally, Vertex is evaluating small-molecule inhibitors targeting acute and chronic pain using nonopioid treatments, and small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.

Argus has identified 10 Investment Themes for 2025. This week, we take a deep dive into Theme 10, Pharmaceuticals and Biotechnology. With the aging U.S. population, the use of medications and medical technology is rising. The number of medications dispensed increased about 60% from 2012 to 2022, according to Statista. With the aging Baby Boomers cohort and the increasing percentage of the population over the age of 65, the rate is expected to go up. Analysts estimate that nine out of 10 elderly adults take prescription medication and more than half take four or more prescriptions. While the elderly represent the majority of the prescription market, those under the age of 65 are also taking more medications than ever as treatments become available for chronic and rare diseases. Blockbuster drugs also contribute to the escalating use of prescriptions. The market for GLP-1 medications used for weight loss and diabetes reached $47 billion in 2024 and is projected to reach $150 billion by 2030, according to market research firm MarketsandMarkets. Similarly, the global Alzheimer's market was at $8 billion in 2024 and is expected to grow at a 5% compounded annually growth rate through 2032. Over the coming years, the industry will continue to face headwinds from patent expirations on key drugs. A growing number of Big Pharma companies have turned to AI for drug development to boost revenue streams. Medtech is another growth sector within Healthcare. Doctors increasingly are using robotics and sophisticated and evolving medical devices to enhance quality of life. This week's list is a collaboration from our Healthcare team. Here are some companies on the Argus BUY list that our analysts believe are poised to benefit.