IBD Stock Of The Day: Why Coronavirus Isn't Slamming This Biotech Leader Vertex Pharmaceuticals VRTX $ 204.07 $1.930.94%20% IBD Stock Analysis Vertex is tied for first place in biotech stock group with 99 Composite Rating Its relative strength line is in record high territory VRTX has Relative Strength Rating of 95 out of a best-possible 99 Composite Rating 99/99 Industry Group Ranking 5/197 Emerging Pattern High RS * Not real-time data. All data shown was captured at 2:14PM EDT on 03/23/2020. Vertex Pharmaceuticals (VRTX) is the IBD Stock Of The Day as VRTX stock parries coronavirus worries on enthusiasm for its new cystic fibrosis treatment. the time we're coming on strong back in 2017 Square posted a 250 percent gain in Last year, the biotech company launched Trikafta, a triple-drug regimen for 90% of patients with cystic fibrosis. In less than three months, the cystic fibrosis treatment generated $420 million in revenue. Since then, analysts have remained bullish on VRTX stock. This year will prove transformational for VRTX stock, by all accounts. On April 1, Chief Executive Jeffrey Leiden will step down, handing the reins over to Reshma Kewalramani. Kewalramani is currently the chief medical officer. Further, the biotech company will switch gears from its focus on cystic fibrosis treatments. Today, Vertex is eyeing five new disease types beyond cystic fibrosis, Barclays analyst Gena Wang said in a recent report to clients. "Approval of Trikafta marks beginning of the end of the transformative journey, and Vertex looks well poised for short- and long-term growth from the dominant cystic fibrosis franchise," she said. VRTX Stock Weathers Coronavirus As of Friday's close, VRTX stock has slipped nearly 6% this year. But that's holding up well when compared to the broader market of biotech stocks. Collectively, shares of biotech companies have skidded almost 25% this year. The biotech company currently makes four cystic fibrosis treatments. CEO Leiden previously told Investor's Business Daily that he expects most patients to switch to Trikafta over time. Studies show Trikafta is more effective than its predecessors. In the current first quarter, analysts polled by Zacks Investment Research call for $1.25 billion in sales for Vertex. Undoubtedly, a growing piece of that will come with the newest cystic fibrosis treatment. Total revenue would rise 46% year over year. Analysts also call for Vertex to earn $1.77 per share, minus some items. That would be a 55% jump. "We expect a rapid switch to Trikafta from current therapies, and quick penetration to previously unaddressable treatment-naive patients given well-documented genetic profile for each patient and Trikafta's impressive clinical profile," Barclays' Wang said. Wang expects Vertex's cystic fibrosis treatments to have a $10 billion peak sales potential. She initiated coverage of VRTX stock with an overweight rating and 271 price target. Beyond Cystic Fibrosis Treatments Outside cystic fibrosis treatments, Vertex is targeting five new, key diseases. Among those are new treatments for pain, blood diseases, kidney diseases and muscular dystrophy. The biotech is also looking at a treatment for a hereditary condition that impacts the lungs or liver. Notably, Vertex is partnered with Crispr Therapeutics (CRSP) in using gene-editing technology for a pair of blood diseases. The biotech company also acquired Exonics Therapeutics, which specializes in gene-editing technology. "With significant cash accumulating from the success of the cystic fibrosis franchise, we expect Vertex to be opportunistic and active in business development activities to continue to generate additional growth opportunities," Wang said. VRTX Stock Has High Ratings Shares of VRTX stock lead IBD's industry group of nearly 600 biotech companies with a perfect Composite Rating of 99. The CR weighs a stock's key technical and fundamental measures. This puts VRTX stock in the top 1% of all stocks regardless of industry group. Importantly, the group of biotech stocks ranks fifth out of 197 industry groups IBD tracks. Further, VRTX stock has a Relative Strength Rating of 95 out of a best-possible 99. This puts the biotech company's 12-month performance in the top 5% of all stocks. In afternoon trading on the stock market today, VRTX stock dipped 1.5%, near 202.90. Representatives of Vertex weren't immediately available to respond to a request for comment. Follow Allison Gatlin on Twitter at@IBD_AGatlin. https://www.investors.com/news/tech...iotech-transitions-cystic-fibrosis-treatment/