The Ultimate Biotech Stock to Buy With $500 Right Now

Biotech companies are all about innovation. These players are developing and using cutting-edge technologies to address a variety of diseases, and in many cases, their efforts are leading to game-changing products for patients. You can invest in them during the earliest stages of their story, and if they're successful, score an enormous win over time.

That involves some risk, though, as candidates may not always be successful -- and setbacks could weigh heavily on stock performance. So how can you benefit from the innovation of biotech, but at a lower risk level? By choosing a company that's further along in its growth story and has brought products to market, and at the same time continues to innovate.

Let's check out one that fits the bill. In fact, it's the ultimate biotech stock to buy with $500 right now.

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A market leader

This biotech company is Vertex Pharmaceuticals (NASDAQ: VRTX), the world's leading player in the cystic fibrosis (CF) treatment market. Vertex has changed the lives of CF patients and their families over the past several years. The company won approval for its first CF drug in 2012 and, since then, has continued to add to the portfolio, with the ability to now treat about 90% of the CF patient population.

Vertex's CF drugs are designed to fix a faulty protein made by the CFTR gene -- since genetic mutations are involved in this disease, it's challenging to develop one drug to handle every case. Now, Vertex's treatments can address most, but the company hasn't stopped there. It's working on a candidate to treat the cases that can't be helped by its current drugs. This ongoing innovation, as well as strong intellectual property, should fuel Vertex's leadership and growth in the years to come.

New growth drivers

On top of this, Vertex has two new growth drivers. The company won approval for Casgevy for blood disorders and Journavx for pain management in 2023 and 2025, respectively. These launches are ongoing, and trends are very positive. Casgevy is a gene editing treatment requiring a months-long process, so it's normal that this product takes a while to start delivering growth -- but now may be the moment shareholders were waiting for. Vertex expects non-CF products to bring in at least $500 million in revenue this year.

The company has called both products blockbuster opportunities, so we could be in the very early stages of this growth story right now. And Vertex forecasts as much as $13.1 billion in total revenue this year as the CF portfolio continues to deliver gains.

This leadership and ongoing innovation in CF, as well as new products, position Vertex for many years of strength -- and that's why it's the ultimate biotech to buy with $500 right now.

Adria Cimino has positions in Vertex Pharmaceuticals. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.