Summary
Vertex Pharmaceuticals Incorporated, as of its fiscal year ending December 30, 2016, demonstrated significant revenue growth driven by its cystic fibrosis (CF) treatments, ORKAMBI and KALYDECO. Total revenues increased by 65% to $1.7 billion, largely due to a 68% rise in product revenues, with ORKAMBI sales more than doubling to $979.6 million and KALYDECO sales growing to $703.4 million. Despite this strong top-line performance, the company reported a net loss of $112.1 million for the year, an improvement from the previous year's loss of $556.3 million, primarily due to increased revenue and a reduction in certain expenses like restructuring charges and intangible asset impairment. The company is heavily focused on advancing its CF pipeline, with key developments including the Phase 3 program for tezacaftor in combination with ivacaftor, expected to yield data in the first half of 2017 and a potential NDA submission in the second half. Vertex is also investing in next-generation correctors (VX-152, VX-440, VX-659, VX-445) and an ENaC inhibitor (VX-371), with Phase 1 and 2 trials underway. The company also out-licensed four oncology programs to Merck KGaA in January 2017, securing a substantial upfront payment.
Financial Highlights
51 data points| Revenue | $1.70B |
| Cost of Revenue | $210.46M |
| Gross Profit | $1.49B |
| R&D Expenses | $1.05B |
| SG&A Expenses | $432.83M |
| Operating Expenses | $1.69B |
| Operating Income | $9.94M |
| Net Income | -$112.05M |
| EPS (Basic) | $-0.46 |
| EPS (Diluted) | $-0.46 |
| Shares Outstanding (Basic) | 244.69M |
| Shares Outstanding (Diluted) | 244.69M |
Key Highlights
- 1Total revenues grew 65% year-over-year to $1.7 billion in 2016, driven by strong product sales.
- 2ORKAMBI net product revenues significantly increased to $979.6 million in 2016 from $350.7 million in 2015.
- 3KALYDECO net product revenues increased to $703.4 million in 2016 from $631.7 million in 2015.
- 4The company reported a net loss of $112.1 million in 2016, an improvement from the $556.3 million net loss in 2015.
- 5Vertex is advancing its cystic fibrosis pipeline with the Phase 3 trial for tezacaftor/ivacaftor, expecting data in early 2017 and a potential NDA submission later in the year.
- 6Significant R&D investment continues, with ongoing trials for next-generation CFTR correctors and other potential therapies.
- 7In January 2017, Vertex entered a strategic collaboration with Merck KGaA, licensing four oncology programs for an upfront payment of $230 million.