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The 'Vertex Pharmaceuticals' Competitive Advantage

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As of September 2015, Vertex Pharmaceuticals’ gross profit for the twelve months was $638.8 million dollars. That is 89.68% gross margin for the quarter of September 2015 with durable competitive advantage. Gross profit is calculated by difference in revenue and cost of goods sold. As of fiscal year of December 2014, Vertex Pharmaceuticals had revenue of $ 580.415 mil and $60.987 mil of cost of goods sold. The total gross profit of the year 2014 was $519.4 million dollars. However, in September 2015, gross profit was $277.9 million dollars with revenue of $309.816 mil and $31.96 mil in cost of good sold for the quarter. Since Vertex Pharmaceuticals had gross margin greater than 40%, it had durable competitive advantage over other competition

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