Therapeutics Stocks Q2 Results: Benchmarking BioMarin Pharmaceutical (NASDAQ:BMRN)

Vertex Pharmaceuticals (VRTX) completed its largest acquisition, Crinetics, for $10B, gaining Palsonify and Atumelnant. Palsonify, for acromegaly, and Atumelnant, for CAH and Cushing's syndrome, could generate over $5B in peak revenue. Vertex aims to diversify beyond cystic fibrosis with these and other pipeline drugs.

H.C. Wainwright reiterated a Buy rating and $130 price target for Halozyme Therapeutics (HALO) after FDA approved Roche's cancer treatment using Halozyme's technology. HALO trades at $111.08, with 17% upside to the target. The approval offers a 12-month adjuvant royalty opportunity for Halozyme, though the addressable population is relatively small. Halozyme also won a patent case against Merck and completed a $1.5B convertible notes offering.

Biotech stocks are rebounding due to record pharmaceutical M&A deals, with 37 acquisitions worth at least $1B each in 2026, totaling $216B. Key deals include Vertex (VRTX) acquiring Crinetics (CRNX) for $10B. Institutional investors are bullish, but retail sentiment is low. The Direxion Biotech Bull 3x Shares (LABU) fund has gained 52.5% YTD, despite its index being down last week.

BofA Securities reduced its price target for Vertex Pharmaceuticals (VRTX) to $667 from $672, maintaining a Buy rating. The company expects Q3 revenue of $2.42B for Trikafta, down 3% QoQ, and raised its 2026 revenue guidance to $13.1B-$13.2B. Vertex is a top pick for 2026, according to BofA, which is bullish on its cystic fibrosis franchise. Other analysts have also raised price targets following positive trial data for its kidney disease treatment, inaxaplin.

Halozyme won a Dutch court order blocking Merck's injectable Keytruda in 8 European markets, citing patent infringement. Merck disputes the decision and is evaluating next steps. Halozyme also sued Merck in the US and Germany, where a preliminary injunction was granted.

Vertex Pharmaceuticals (VRTX) presented new data on ALYFTREK at the North American Cystic Fibrosis Conference, showing recovery of pancreatic function in some children aged 2 to 5. The study found a mean increase of 110.2 µg/g in fecal elastase-1 levels, with 48.6% of children reaching pancreatic sufficiency. Vertex also shared additional abstracts on CFTR modulators. ALYFTREK is investigational for this age group.