VRTX's Q1 Earnings Lag Estimates, 2025 Revenue View Tightened

Vertex Pharmaceuticals Incorporated VRTX reported adjusted earnings of $4.06 per share for the first quarter of 2025, missing the Zacks Consensus Estimate of $4.22. Earnings declined 14.7% on a year-over-year basis.The company reported total revenues of $2.77 billion for the first quarter, which missed the Zacks Consensus Estimate of $2.82 billion. Total revenues rose 3% year over year, primarily driven by higher sales of Trikafta/Kaftrio (marketed as Kaftrio in Europe). (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)VRTX’s total revenues comprised cystic fibrosis (“CF”) and other products revenues, as well as other collaboration revenues.Shares of Vertex have rallied 24.3% so far this year against the industry’s decrease of 2.2%.Image Source: Zacks Investment ResearchVRTX's Q1 Results in DetailTotal revenues rose 9% year over year in the United States to $1.66 billion, while sales outside the United States decreased 5% to $1.11 billion. On the first-quarter conference call, management stated that revenues in ex-U.S. markets were negatively impacted by the availability of an illegal copy product in Russia, where Vertex is experiencing a violation of its intellectual property rights.The company recorded $10 million of collaboration revenues in the first quarter.The company’s total product revenues comprise sales of Trikafta/Kaftrio, the newly approved CFTR modulator therapy, Alyftrek (vanza triple) and other product revenues.Trikafta generated sales worth $2.54 billion, up 2.4% year over year. The product’s sales narrowly missed the Zacks Consensus Estimate of $2.55 billion as well as our model estimate of $2.62 billion.Alyftrek generated sales worth $53.9 million in the first quarter. Alyftrek, a next-in-class triple combination regimen, was approved by the FDA in December 2024 for treating people with CF aged six years and older. Management is already seeing a steady uptake from all patient groups who are eligible for treatment with Alyftrek.Revenue from other products decreased 17.4% year over year to $170.8 million.Other product revenues included $14.2 million in sales of Casgevy, an insignificant amount from the newly approved pain drug, Journavx (suzetrigine) as well as sales of VRTX’s other CF products – Symdeko/Symkevi (marketed as Symkevi in Europe), Orkambi and Kalydeco.Vertex and partner CRISPR Therapeutics’ CRSP one-shot gene therapy, Casgevy, was approved for two blood disorders, sickle cell disease and transfusion-dependent beta-thalassemia, in multiple regions in late 2023/early 2024.Vertex leads the global development and commercialization of Casgevy under the terms of the 2021 agreement with support from CRISPR Therapeutics.Casgevy sales surged 77.5% on a sequential basis, reflecting strong adoption already.The FDA approved Vertex’s oral, non-opioid, highly selective NaV1.8 pain signal inhibitor, Journavx, for the treatment of adults with moderate-to-severe acute pain in January 2025.VRTX's Q1 Cost DiscussionAdjusted research and development (R&D) expenses were up 31.2% year over year to $879 million while adjusted selling, general and administrative (SG&A) expenses increased 22.4% to $333 million in the reported quarter due to higher investment in various ongoing clinical studies and higher expenses to support the commercial launch of Journavx.During the first quarter, Vertex recorded acquired in-process research and development (AIPR&D) costs of $19.8 million compared with $76.8 million reported in the year-ago quarter.Adjusted operating income was almost $1.18 billion in the quarter, indicating a decrease of almost 12% year over year.VRTX's 2025 GuidanceThe company raised the lower end of its total revenue guidance for full-year 2025.Vertex now expects total revenues in the range of $11.85-$12 billion for 2025 compared with the previous expectation of $11.75-$12 billion. The Zacks Consensus Estimate for total revenues is pegged at $11.86 billion for 2025.The updated guidance reflects the continued growth in CF medicines, including the launch of Alyftrek, the uptake of Casgevy and early contributions from the launch of Journavx.Combined adjusted R&D, AIPR&D and SG&A expense for 2025 is expected in the band of $4.9-$5 billion. The adjusted tax rate is expected to be in the range of 20.5%-21.5%. Both estimates remain unchanged from the previous expectations.VRTX's Pipeline UpdateBesides acute pain, suzetrigine is also being developed in late-stage studies for the treatment of diabetic peripheral neuropathy and painful lumbosacral radiculopathy.Vertex has a rapidly advancing mid to late-stage pipeline in other disease areas, like APOL1-mediated kidney diseases, alpha-1 antitrypsin deficiency and cell therapy for type I diabetes (T1D).A phase II study is evaluating VRTX’s oral formulation of next-gen Nav1.8 inhibitor, VX-993, for the treatment of moderate-to-severe acute pain following bunionectomy surgery. Data from the same is expected in the second half of 2025.VX-993 is also in phase I development for the intravenous formulation.The acquisition of Alpine in May 2024 added povetacicept to Vertex’s pipeline. Povetacicept is designed to target two proteins, namely BAFF and APRIL, which are jointly responsible for the cause of multiple serious autoimmune diseases.The phase III RAINIER study is investigating povetacicept for the treatment of IgA nephropathy. Povetacicept is also being evaluated in two phase II basket studies, one in renal diseases and a second in B cell-mediated diseases. Data from these studies is expected later this year.Vertex is developing zimislecel in the phase III portion of the ongoing phase I/II/III study for treating patients with T1D with severe hypoglycemic events (SHEs) and impaired awareness of hypoglycemia. Enrollment and dosing in this study are expected to be completed later in the second quarter of 2025. Vertex plans to submit regulatory filings seeking approval for zimislecel in T1D in 2026.Vertex Pharmaceuticals Incorporated Price, Consensus and EPS Surprise Vertex Pharmaceuticals Incorporated price-consensus-eps-surprise-chart | Vertex Pharmaceuticals Incorporated QuoteVRTX’s Zacks Rank & Stocks to ConsiderVertex currently carries a Zacks Rank #3 (Hold).Some better-ranked stocks in the biotech sector are ADMA Biologics Inc. ADMA and Immunocore Holdings PLC IMCR, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 69 cents to 71 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 87 cents to 93 cents. Year to date, shares of ADMA have rallied 38.3%.ADMA’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 32.80%.In the past 60 days, estimates for Immunocore’s loss per share have narrowed from $1.63 to $1.50 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $1.83 to $1.68. Year to date, shares of IMCR have gained 3.9%.IMCR’s earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average surprise being 31.91%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vertex Pharmaceuticals Incorporated (VRTX): Free Stock Analysis Report ADMA Biologics Inc (ADMA): Free Stock Analysis Report CRISPR Therapeutics AG (CRSP): Free Stock Analysis Report Immunocore Holdings PLC Sponsored ADR (IMCR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks