Vertex Reports 13% Revenue Increase, Exceeds Profit Estimates on Strong Cystic Fibrosis Results

Vertex Pharmaceuticals has unveiled its first-quarter 2024 financial results, showcasing a notable 13% year-over-year rise in product revenue, driven predominantly by the robust performance of its cystic fibrosis (CF) treatments. The company reported product revenue of $2.69 billion for the quarter ending March 31, up from nearly $2.38 billion in the same period the previous year. Vertex's adjusted earnings per share stood at $4.76, surpassing analyst projections of $4.06, as estimated by LSEG data, while quarterly revenue predictions had been set at $2.58 billion.

The company's net income saw a significant increase, surging 56% from $794 million in the first quarter of 2023 to over $1.24 billion in the most recent quarter. This growth was largely fueled by the success of Vertex’s CF treatment Trikafta (elexacaftor/tezacaftor/ivacaftor), known as Kaftrio outside the United States. Trikafta generated $2.483 billion in revenue in the first quarter, a substantial rise from $2.097 billion in the same period last year. In the U.S., Trikafta's earnings were boosted by its approval in April 2023 for use in children aged two to five years. Additionally, the European Commission’s approval of Kaftrio for similar pediatric use in November 2023 enhanced the company's CF business internationally.

Chief Operating Officer Stuart Arbuckle expressed optimism about the company's future in CF, stating that the outlook is positive in the short, medium, and long term. He emphasized the strategy to drive near-term growth by expanding the patient base to include younger age groups and additional geographies.

As of the end of the first quarter, Vertex reported total current assets amounting to nearly $24 billion. For the rest of the year, the company reaffirmed its 2024 revenue guidance of $10.55 billion to $10.75 billion.

Vertex has several upcoming clinical milestones and product launch opportunities that are expected to support its sales forecast. Notably, the company is awaiting the FDA’s decision on its investigational CF treatment, vanza triple, which combines vanzacaftor, tezacaftor, and deutivacaftor as a once-daily therapy for patients aged 6 years and older. Data from the Phase III SKYLINE 102 and SKYLINE 103 studies, released in February 2024, indicated that this drug combination could match Trikafta in improving forced expiratory volume in CF patients aged 12 and above. Furthermore, the Phase III RIDGELINE 105 trial data showed significant reductions in mean sweat chloride levels in patients aged 6 to 11 years.

Beyond its CF portfolio, Vertex is expanding its commercial operations for the newly approved Casgevy (exagamglogene autotemcel), a CRISPR/Cas9 gene-edited cell therapy aimed at treating sickle cell disease and transfusion-dependent beta-thalassemia. In collaboration with CRISPR Therapeutics, the company has activated over 25 treatment centers globally, with several patients already beginning the cell collection process.

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