Is Vertex Pharmaceuticals Stock Halal?

How much of Vertex revenue comes from haram?

Vertex earns all its revenue from selling prescription medicine treating cystic fibrosis.

Accordingly, Practical Islamic Finance finds none of Vertex’s revenue to come from anything inherently haram.

Does Vertex rely on interest to operate?

According to the company’s annual report for the fiscal year ended December 31, 2020 (Numbers in thousands, U.S. dollars):

Revenue: $6,205,683

Total Expenses: $3,336,293

Interest Income: $22,239

Interest Expense: $58,151

Interest Expense / Total Expense: 1.74%

Interest Income / Revenue: 0.36%

From the aforementioned, Practical Islamic Finance finds interest (riba) used but not relied upon in Vertex’s operations.

What is Vertex’s Environmental, Social and Governance (ESG) impact?

Environment

Vertex reduced its nonhazardous waste by 58% according to Vertex’s 2020 Corporate Responsibility Report.

Also, Vertex achieved 100% renewable energy sourcing for its London and Oxford, U.K. facilities.

Social

Vertex has a slightly above average Glassdoor rating of 3.6 out of 5 from over 500 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

Vertex made over $5M in donations for Covid-19 relief efforts according to its 2020 Corporate Responsibility Report.

From the aforementioned, Practical Islamic Finance finds Vertex to have a net positive ESG impact.

Comfort Rating

From Vertex’s business, financial and ESG reviews, Practical Islamic Finance rates Vertex as:

Comfortable to invest in from a Halal perspective.

Sources

https://www.trikafta.com/how-trikafta-works

https://www.symdeko.com/how-symdeko-works

https://www.orkambi.com/how-orkambi-works

https://www.kalydeco.com/how-kalydeco-works

https://www.glassdoor.com/Reviews/Vertex-Pharmaceuticals-Reviews-E2080.htm

https://www.vrtx.com/sites/default/files/CR2020.pdf https://investors.vrtx.com/static-files/95ab6f4b-ff5c-4b78-83e2-fbfa83fcdd77