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Vertex
🇺🇸 NASDAQ:VRTX
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Jun 30, 2023

Vertex Q2 2023 Earnings Report

Vertex reported strong second-quarter results, driven by increased product revenue and progress in clinical development programs.

Key Takeaways

Vertex Pharmaceuticals reported a 14% increase in product revenue to $2.49 billion for Q2 2023, driven by strong uptake of TRIKAFTA/KAFTRIO internationally and continued performance in the U.S. The company raised its full-year 2023 revenue guidance to $9.7 to $9.8 billion.

Product revenue increased by 14% to $2.49 billion compared to Q2 2022, driven by TRIKAFTA/KAFTRIO uptake.

The FDA accepted exa-cel BLAs for severe sickle cell disease (SCD) and transfusion-dependent beta thalassemia (TDT), granting Priority Review for SCD with a PDUFA date of December 8, 2023.

Full year 2023 product revenue guidance raised to $9.7 to $9.8 billion.

Clinical pipeline advanced with multiple near-term milestones expected.

Total Revenue
$2.49B
Previous year: $2.2B
+13.5%
EPS
$3.89
Previous year: $3.6
+8.1%
GAAP effective tax rate
21.2%
Previous year: 20.9%
+1.4%
Gross Profit
$2.18B
Previous year: $1.93B
+12.9%
Cash and Equivalents
$11.2B
Previous year: $8.7B
+29.1%
Free Cash Flow
$1.07B
Previous year: $1.09B
-1.1%
Total Assets
$20.3B
Previous year: $15.6B
+30.6%

Vertex

Vertex

Vertex Revenue by Segment

Vertex Revenue by Geographic Location

Forward Guidance

Vertex is raising its full year 2023 CF product revenue guidance to $9.7 to $9.8 billion. The company is also increasing full year 2023 combined GAAP and non-GAAP R&D, Acquired IPR&D and SG&A expense guidance.

Positive Outlook

  • CF product revenues: $9.7 to $9.8 billion
  • Combined GAAP R&D, Acquired IPR&D and SG&A expenses: $4.55 to $4.8 billion
  • Combined Non-GAAP R&D, Acquired IPR&D and SG&A expenses: $4.1 to $4.2 billion
  • Non-GAAP effective tax rate: 21% to 22%
  • The increase reflects the expected full-year impact of the strong uptake of TRIKAFTA/KAFTRIO in multiple countries internationally and continued performance of TRIKAFTA in the U.S.

Challenges Ahead

  • This guidance includes an approximately 150-basis-point negative impact from changes in foreign currency rates, inclusive of our foreign exchange risk management program.
  • The increase accounts for higher acquired IPR&D expenses incurred year-to-date, including a $70 million milestone payment to CRISPR Therapeutics.
  • Combined GAAP R&D, Acquired IPR&D and SG&A expenses: $4.55 to $4.8 billion
  • Combined Non-GAAP R&D, Acquired IPR&D and SG&A expenses: $4.1 to $4.2 billion
  • Non-GAAP effective tax rate: 21% to 22%

Revenue & Expenses

Visualization of income flow from segment revenue to net income

Company Overview

Full financial data and analysis

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