Vertex reports $2.69bn net profit in Q1 2024

Vertex has recently reported a significant increase in its net revenues, reaching $2.69 billion in the first quarter of 2024. This marks a 13% growth from the earnings reported in the same period last year. The company credits this rise to a robust market performance outside the United States, with international profits amounting to $1.17 billion—an increase of 21%. Meanwhile, domestic profits in the U.S. rose by 8%, reaching $1.52 billion.

Vertex has also adjusted its product revenue guidance upward, now forecasting between $10.55 billion and $10.75 billion. This revision aligns with the company's anticipation of sustained growth within the cystic fibrosis (CF) market, as well as the introduction of its new gene therapy, Casgevy.

Trikafta, also marketed as Kaftrio outside the U.S., remains a key revenue driver for Vertex. This CF medication, which was initially approved by the U.S. Food and Drug Administration (FDA) in 2019, continues to show strong performance. In April 2023, the FDA expanded the drug’s approval to include children aged two to five with specific CF mutations. Trikafta generated $1.52 billion in revenues in the first quarter of 2024 alone.

Another major player in Vertex’s portfolio is Casgevy, a gene therapy co-developed with CRISPR Therapeutics. Casgevy holds the distinction of being the first CRISPR-based gene therapy for sickle cell anemia, receiving conditional approval from the UK Medicines and Healthcare Products Regulatory Agency (MHRA) in November 2023. More recently, it secured its second FDA approval to treat transfusion-dependent beta-thalassemia in patients aged 12 and older. By mid-April, the company had activated 25 centers worldwide capable of administering this groundbreaking therapy.

Looking ahead, industry forecasts are optimistic about Vertex’s key products. According to GlobalData, Trikafta is projected to generate global sales of $10.5 billion by 2027, while Casgevy is expected to bring in $915 million globally.

On the expense side, Vertex reported a decrease in both GAAP and non-GAAP research and development (R&D) costs, dropping from $1.3 billion to $1.2 billion. Additionally, there was a reduction in acquired in-process R&D (IPR&D) and selling, general, and administrative (SG&A) expenses. These decreases were partly due to lower acquired IPR&D costs, offset somewhat by ongoing and new investments aimed at supporting clinical development programs now in their mid to late stages.

Financially, Vertex has bolstered its cash position. As of March 31, 2024, the company reported cash, cash equivalents, and total marketable securities amounting to $14.6 billion, up from $13.7 billion at the close of December 2023.

In a strategic move to expand its capabilities in immunotherapy, Vertex acquired Alpine Immune Science for $4.9 billion last month. This acquisition provides Vertex with access to Alpine’s extensive pipeline, including povetacicept, a promising Phase III-ready candidate for treating IgA nephropathy.

In summary, Vertex’s strong financial performance, strategic acquisitions, and innovative therapeutic offerings position it well for continued growth and success in the biopharmaceutical industry.