Vertex Q2 2024 Financial Results Released

Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) announced its financial results for the second quarter ending June 30, 2024, alongside an increase in its full-year product revenue guidance to a range of $10.65 billion to $10.85 billion. CEO and President Reshma Kewalramani emphasized the company's strong revenue growth and strategic focus on commercial execution in cystic fibrosis (CF) and the global launch of CASGEVY. The company is also preparing for potential launches of new treatments, including the vanzacaftor triple combination for CF and suzetrigine for acute pain, while advancing a diverse pipeline.

In the second quarter of 2024, Vertex’s product revenue increased by 6% to $2.65 billion, driven primarily by the robust performance of TRIKAFTA/KAFTRIO in younger age groups. In the U.S., net product revenue rose by 7% to $1.61 billion, while international revenue saw a 5% increase to $1.03 billion compared to the same period in 2023.

Research and development (R&D) and selling, general, and administrative (SG&A) expenses combined for both GAAP and Non-GAAP measures increased to $1.3 billion and $978 million respectively, from $1.0 billion and $928 million in the second quarter of 2023. This rise reflects increased investments to support global launches and ongoing clinical development programs.

Vertex incurred $4.4 billion in acquired in-process R&D (AIPR&D) expenses, primarily due to its acquisition of Alpine Immune Sciences. This acquisition substantially impacted Vertex's financial results, leading to GAAP and Non-GAAP net losses of $3.6 billion and $3.3 billion, respectively, compared to net incomes of $916 million and $1.0 billion in the second quarter of 2023.

As of June 30, 2024, Vertex’s cash, cash equivalents, and marketable securities totaled $10.2 billion, down from $13.7 billion at the end of 2023. The reduction was largely due to the cash used for the Alpine acquisition, counterbalanced by positive cash flows from other operations.

For the full year 2024, Vertex revised its product revenue guidance upwards to $10.65 billion to $10.85 billion. The guidance reflects anticipated growth in CF treatments and the launch of CASGEVY in various regions. The company also provided updated guidance for combined GAAP and Non-GAAP R&D and SG&A expenses and for AIPR&D expenses, projecting non-GAAP R&D and SG&A expenses to remain in the range of $4.2 billion to $4.3 billion. Full-year AIPR&D expenses are forecasted to be around $4.6 billion, including the Alpine acquisition-related charge.

Vertex's CF portfolio continues to expand with regulatory progress for the vanzacaftor triple therapy in both the U.S. and Europe. The company also secured long-term reimbursement agreements in the U.K., ensuring broad access to its CF treatments. Notable regulatory approvals include KALYDECO for very young infants in Europe and TRIKAFTA for additional rare CF mutations in Canada.

CASGEVY, a gene-edited cell therapy for sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT), is now approved in multiple regions including the U.S. and Europe. Vertex has activated over 35 treatment centers globally and has seen increasing patient enrollments for CASGEVY.

Vertex’s R&D pipeline also includes suzetrigine for acute pain, which has received FDA Priority Review with a target action date in early 2025. The company is advancing its clinical-stage programs for CF, SCD, TDT, and several other serious conditions. This includes continued development of oral CFTR modulators, a nebulized mRNA therapy for CF, and treatments for kidney disease, type 1 diabetes, and myotonic dystrophy type 1.

In summary, Vertex Pharmaceuticals has demonstrated significant growth and strategic advancements in its CF portfolio and broader pipeline, supported by strong financial performance and increased revenue guidance for 2024.

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