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Jun 30, 2024
Vertex Q2 2024 Earnings Report
Vertex reported a strong second quarter with revenue growth and strategic advancements.
Key Takeaways
Vertex Pharmaceuticals reported a 6% increase in product revenue to $2.65 billion for Q2 2024, driven by TRIKAFTA/KAFTRIO. The company raised its full-year product revenue guidance to $10.65 to $10.85 billion. Key advancements include FDA acceptance of NDA for vanzacaftor triple in CF and suzetrigine for acute pain.
Product revenue increased by 6% to $2.65 billion compared to Q2 2023, driven by TRIKAFTA/KAFTRIO.
The FDA accepted NDA submissions for vanzacaftor triple in CF and suzetrigine for moderate-to-severe acute pain with Priority Review.
Vertex raised its full-year product revenue guidance to $10.65 to $10.85 billion.
GAAP and Non-GAAP net losses were $3.6 billion and $3.3 billion, respectively, primarily due to the Alpine acquisition-related charge.
Vertex
Vertex
Vertex Revenue by Segment
Revenue by Segment
TRIKAFTA/KAFTRIO Revenue
CapyFin.comOther Product Revenues Revenue
CapyFin.com Forward Guidance
Vertex raised its full year product revenue guidance from $10.55-$10.75 billion to $10.65-$10.85 billion. Vertex continues to expect combined Non-GAAP R&D and SG&A expenses to be in a range of $4.2 billion to $4.3 billion for the full year. Vertex now expects 2024 AIPR&D expenses of approximately $4.6 billion for the full year, including the Alpine acquisition-related charge in the second quarter of 2024.
Positive Outlook
- Total product revenues are expected to be between $10.65 billion and $10.85 billion.
- Combined Non-GAAP R&D and SG&A expenses are projected to be between $4.2 billion and $4.3 billion.
- Guidance includes expectations for continued growth in CF.
- Guidance includes expectations for the launch of CASGEVY in approved indications and geographies.
- Guidance includes expectations for continued investment in multiple mid- and late-stage clinical development programs and commercial and manufacturing capabilities.
Challenges Ahead
- AIPR&D expenses are expected to be approximately $4.6 billion, including the Alpine acquisition-related charge.
- Full year Non-GAAP tax rate is impacted by the Alpine AIPR&D expense, which is non-deductible for tax.
- Combined GAAP R&D and SG&A expenses are projected to be between $5.0 billion and $5.2 billion
- Acquired IPR&D expenses is expected to be $4.6 billion
- Impact of the Alpine acquisition affected the full year Non-GAAP tax rate
Revenue & Expenses
Visualization of income flow from segment revenue to net income