Moderna vs. Vertex Pharmaceuticals: Which Healthcare Stock Is a Better Buy in 2026?
2026-10-13 12:17
•Sara Appino •The Motley Fool
•••• ••••••• Axe Cap view
Vertex vs. Moderna: Which Healthcare Stock to Back in 2026?
Vertex’s strong profits and pipeline diversification make it a safer pick than Moderna’s long-shot mRNA bets.
Moderna’s ambition to dominate beyond COVID-19 with mRNA therapies in RSV and oncology is intriguing but marked by losses and sharply falling revenues. A $2.8 billion net loss and no free cash flow in FY2025 highlight that the company is still burning cash to rebuild growth. On the other hand, Vertex Pharmaceuticals is the mature player here. Its dominance in cystic fibrosis translates into robust revenue growth and high profit margins, backed by $3.2 billion in free cash flow. Plus, its efforts to diversify into gene therapies and pain management reduce reliance on a single franchise. For South African investors, while neither company is JSE-listed, USD/ZAR sensitivity matters because biotech earnings are dollar-based and can shift alongside rand moves. The rand’s recent strength has helped dampen foreign earnings volatility but an unstable currency could tip the scales. The safer way to gain exposure is through global healthcare ETFs hedged to USD or selectively buying Vertex ADRs. this is just our opinion and not financial advice
Trim any unhedged Moderna exposure due to ongoing cash burn and competition. Look to accumulate Vertex for steady cash flow and pipeline growth. Monitor USD/ZAR for currency risk impact on offshore biotech investments.
- VRTX
- MRNA
- USD/ZAR
- Moderna fails to commercialize new mRNA products
- Rand volatility increases, impacting offshore biotech returns
6/10
The article compares Moderna and Vertex Pharmaceuticals as investment options for 2026. Moderna is expanding its mRNA platform into RSV and oncology but faces profitability challenges with a $2.8B net loss in FY2025 and 39.2% revenue decline. Vertex dominates the cystic fibrosis market with $12.1B revenue, 32.7% net margins, and $3.2B free cash flow, while diversifying into gene therapy and pain management. The author recommends Vertex for its established profitability and growing pipeline, though acknowledges Moderna's long-term platform potential.
Our take is based on reporting first published by The Motley Fool.