Munger Mode rating: 4 out of 5 — Buy. Our own rating from the research report below, on business quality first: moat durability and management, with price separating the top three.
A wonderful business at a fair price. The cystic fibrosis franchise is one of the closest things to a legal monopoly we have ever examined in medicine, run by capable scientist-operators. But at 26–28 times earnings, Mr. Market is charging full freight, and the company has just written its largest acquisition check ever at a 102% premium. You are buying quality here, not a bargain. Charlie always said we should be able to explain a business to a bright teenager in five minutes. Here goes: Vertex makes the only medicines on Earth that treat the underlying cause of cystic fibrosis, a genetic disease that clogs the lungs of about 90,000 people across North America, Europe, and Australia and, untreated, kills most of them by middle age.
Recent filings analysed: 8-K (2026-09-01), 10-Q (2026-08-04), 8-K (2026-08-03), 8-K (2026-07-07).
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