Better Biotech Buy: Vertex Pharmaceuticals Incorporated vs. BioMarin Pharmaceutical Inc.

Two biotech stocks with significant interest in orphan drugs have stumbled over the past year, but can either Vertex or BioMarin turn it around for investors in the coming year?

Apr 29, 2014 at 6:30PM

Orphan drugs, treatments for rare and ultra-rare diseases that have traditionally lacked reliable medicines, have become big business in biotech and pharmaceuticals. Alexion Pharmaceuticals' Soliris might be the most well-known example of a single orphan drug transforming a company from developing firm to biotech powerhouse, as Soliris, a treatment for rare blood disorders, raked in more than $1.3 billion in revenue last year and is set for even greater sums in the future.

Other companies are hoping to harness the power of orphan drugs, and two biotech companies in the thick of the race are Vertex Pharmaceuticals (NASDAQ:VRTX) and BioMarin (NASDAQ:BMRN). Vertex has pushed forward behind Kalydeco, its up-and-coming treatment for cystic fibrosis-related mutations, while BioMarin's hoping to turn recent FDA and European approval for its Morquio-A syndrome therapy Vimizim into strong sales in the near future.

However, both of these stocks have slumped over the past year despite the two companies looking forward to what their orphan drugs can deliver. Will either of these stocks bounce back, and which one's the best to keep your eye on? Find out in the video below, as Motley Fool contributor Dan Carroll takes you through what's powering these two biotech stocks -- and whether either can turn things around for investors.

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Dan Carroll has no position in any stocks mentioned. The Motley Fool recommends BioMarin Pharmaceutical and Vertex Pharmaceuticals. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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