Vertex Pharmaceuticals Incorporated (VRTX) is a well-founded biotechnology company that has stuck to its strategy to continue its success despite the stock’s volatility, says Eric H. Jostrom, Chairman and Chief Investment Officer of Ipswich Investment Management Co., Inc.
“We have been very happy investors in Vertex (VRTX). We know that the stock can be a bit of a yoyo, but we think the company was well founded years ago, and it has stuck to its knitting and continues to be successful. But when the stock is as volatile as it is, when you have a move like it had in the last couple of months, overnight, prudence says you’ve got to pick some of the fruit, which we’ve done,” Jostrom said.
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Jostrom’s firm is taking a more aggressive approach to investing in the biotechnology sector as opportunities become more prevalent in the space, particularly in the genomic area where companies are seeing positive cash flow.
“What we do like, and this is probably the more aggressive money that we have put to work in, is biotechnology. We believe that companies that are known for very high burn rates have come a long way, and in the genomic area there are opportunities here and there, where there are some biotech-related companies that actually have positive cash flow. And they are growing and developing from a one-product company to a two-product and so on,” Jostrom said.