Vertex Announces Q3 2024 Financial Results

Vertex Pharmaceuticals Inc. (Nasdaq: VRTX), headquartered in Boston, has announced its financial results for the third quarter ending September 30, 2024. The company has notably increased its year-end product revenue guidance to a range of $10.8 billion to $10.9 billion. According to Vertex's CEO and President, Dr. Reshma Kewalramani, this period showcased significant revenue growth and operational efficiency.

For the third quarter of 2024, Vertex reported a 12% increase in product revenue, reaching $2.77 billion, largely bolstered by the performance of their lead product, TRIKAFTA®/KAFTRIO®. The US segment saw a 10% rise in net product revenue, totaling $1.71 billion, while the international market experienced a 14% increase, bringing in $1.06 billion.

The company’s combined GAAP and Non-GAAP R&D and SG&A expenses were reported at $1.2 billion and $1.1 billion, respectively, compared to $1.1 billion and $942 million in the same quarter of 2023. This rise is attributed to elevated commercial investments and the advancement of several programs to Phase 3 clinical development. Another notable financial metric was the GAAP effective tax rate, which climbed to 14.6%, up from 12.2% in the previous year.

Vertex’s net income remained stable year-over-year, with both GAAP and Non-GAAP figures standing at $1.0 billion and $1.1 billion respectively, for the third quarters of 2024 and 2023. The company's financial status showed $11.2 billion in cash, cash equivalents, and total marketable securities as of September 30, 2024, down from $13.7 billion at the end of 2023. This reduction is primarily due to the cash outflow associated with the acquisition of Alpine Immune Sciences and stock repurchases.

Reflecting on their future outlook, Vertex has raised its full-year 2024 product revenue guidance from $10.65 billion-$10.85 billion to $10.8 billion-$10.9 billion. This guidance accounts for continuous growth in cystic fibrosis (CF) treatments as well as the anticipated launch of CASGEVY in several markets. Vertex expects combined Non-GAAP R&D and SG&A expenses to fall between $4.2 billion and $4.3 billion for the full year, driven by ongoing investments in clinical programs and commercial capabilities.

Vertex's portfolio for CF remains robust with KAFTRIO now reimbursed across all EU countries. The US FDA has set a target action date of January 2, 2025, for the once-daily vanzacaftor triple combination therapy for CF patients aged six and older. Additionally, regulatory submissions for the vanzacaftor triple are under review in multiple countries, including the EU, UK, Canada, Australia, New Zealand, and Switzerland.

Vertex’s CASGEVY, a CRISPR/Cas9 gene-edited therapy for sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT), has received approval in several regions including the US, EU, and Canada. As of mid-October, 45 authorized treatment centers globally have begun cell collection for patients. The first patient infused with CASGEVY contributed to Vertex’s product revenue in the third quarter of 2024.

In the domain of acute pain management, the FDA has set a January 30, 2025, target action date for Vertex’s suzetrigine, which aims to offer pain relief without the adverse effects associated with opioids. The company continues to advance its clinical-stage pipeline with promising developments in CF, SCD, TDT, acute and peripheral neuropathic pain, APOL1-mediated kidney disease, IgA nephropathy, type 1 diabetes, myotonic dystrophy type 1, and autosomal dominant polycystic kidney disease.

This comprehensive progress across Vertex’s product lines and developmental programs highlights their continued focus on innovation and long-term growth within the biotechnology sector.