Summary
Vertex Pharmaceuticals Inc. reported strong revenue growth for the nine months ended September 30, 2019, with total revenues increasing by 26% to $2.75 billion, primarily driven by a 27% rise in net product revenues to $2.74 billion. This growth was largely attributable to the continued success of their cystic fibrosis (CF) treatments, particularly SYMDEKO/SYMKEVI, which saw a 129% increase in revenue for the nine-month period. The company also announced a significant milestone with the FDA approval of TRIKAFTA in October 2019, a triple combination regimen expected to expand treatment options for a broader CF patient population and contribute to future revenue growth. While revenues are strong, operating costs and expenses also increased significantly by 26% to $2.1 billion for the nine-month period. This rise was mainly due to substantial upfront payments for collaboration agreements with CRISPR and Kymera Therapeutics, totaling $261.6 million in R&D expenses, and costs associated with the acquisition of Exonics Therapeutics. Despite increased expenses, the company's net income attributable to Vertex for the nine months increased by 9% to $593.6 million, demonstrating robust underlying profitability. Vertex also maintains a strong liquidity position with $4.0 billion in cash, cash equivalents, and marketable securities as of September 30, 2019.
Financial Highlights
50 data points| Revenue | $949.83M |
| Cost of Revenue | $131.91M |
| Gross Profit | $817.91M |
| R&D Expenses | $555.95M |
| SG&A Expenses | $159.67M |
| Operating Expenses | $850.50M |
| Operating Income | $99.33M |
| Interest Expense | $14.55M |
| Net Income | $57.52M |
| EPS (Basic) | $0.22 |
| EPS (Diluted) | $0.22 |
| Shares Outstanding (Basic) | 256.95M |
| Shares Outstanding (Diluted) | 260.47M |
Key Highlights
- 1Total revenues increased by 26% year-over-year to $2.75 billion for the first nine months of 2019.
- 2Net product revenues grew by 27% to $2.74 billion for the first nine months of 2019, driven by SYMDEKO/SYMKEVI's significant revenue increase of 129%.
- 3Vertex received FDA approval for TRIKAFTA in October 2019, a new triple combination CF therapy expected to boost future revenue.
- 4Research and development expenses increased substantially due to upfront payments for collaborations ($261.6 million) and the acquisition of Exonics.
- 5Net income attributable to Vertex rose by 9% to $593.6 million for the first nine months of 2019.
- 6The company maintained a strong liquidity position with $4.0 billion in cash, cash equivalents, and marketable securities as of September 30, 2019.