Vertex Grapples With Bearish Chart As Death Cross Emerges

Vertex Pharmaceuticals Inc VRTX is grappling with bearish technical signals as its stock forms a dreaded Death Cross.

Chart created using Benzinga Pro

This occurs when the 50-day moving average falls below the 200-day moving average, often seen as a harbinger of prolonged bearish momentum. For Vertex, the technical woes align with a broader decline—down 15% over six months and nearly 14% in the past month alone.

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Cystic Fibrosis Successes Overshadowed By Painkiller Setback

Despite commanding over 90% of its revenue from its cystic fibrosis drug franchise, Vertex has been unable to fend off investor skepticism.

In 2024, the company made waves with CASGEVY, the first gene-editing-based treatment for Sickle Cell Disease. However, enthusiasm waned in December after its much-anticipated non-addictive painkiller failed to meet clinical trial goals, leading to an 11% slide in shares, according to Insider Monkey.

VRTX Stock Charts Are Not Encouraging

VRTX stock is flashing multiple sell signals:

• Moving Averages: VRTX stock, at $402.49, is below all key averages, including the 50-day ($456.92) and 200-day ($457.35), reinforcing the Death Cross.
• MACD: A negative reading of -17.17 signals strong bearish momentum.
• RSI: At 32.59, the stock is approaching oversold levels but hasn't yet hit the reversal zone.

Cramer's Call Under Pressure

Back in August, Jim Cramer lauded Vertex as a promising player in biotech, emphasizing its groundbreaking work in cystic fibrosis and pain management.

Since then, the stock has dropped nearly 18%, reflecting the volatility that often plagues the biotech sector.

Vertex's technical and fundamental challenges suggest that investors may need patience to see a rebound.

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