VERTEX PHARMACEUTICALS INC / MA Quarterly Report for Q1 Ended Mar 31, 2022

Summary

Vertex Pharmaceuticals Inc. reported strong financial results for the first quarter of 2022, driven by continued growth in product revenues, particularly from its flagship cystic fibrosis (CF) medicine, TRIKAFTA/KAFTRIO. Total revenues increased by 22% year-over-year to $2,097.5 million, with net product revenues reaching $2,097.5 million. Net income saw a healthy increase of 17% to $762.1 million, translating to a diluted EPS of $2.96. The company's robust cash position strengthened, ending the quarter at $8.2 billion in cash, cash equivalents, and marketable securities. Significant investments in research and development continue, with a focus on advancing a broad pipeline of therapies beyond CF, including promising candidates for sickle cell disease, beta thalassemia, APOL1-mediated kidney disease, and pain.

Key Highlights

• 1Total revenues grew 22% to $2,097.5 million in Q1 2022, compared to $1,724.3 million in Q1 2021.
• 2Net income increased 17% to $762.1 million ($2.96 diluted EPS) in Q1 2022, up from $653.1 million ($2.49 diluted EPS) in Q1 2021.
• 3Product revenues were driven by TRIKAFTA/KAFTRIO, which increased 48% year-over-year.
• 4Operating expenses increased by 26% to $1,056.6 million, largely due to a 32% rise in R&D expenses to support pipeline advancement.
• 5The company's cash, cash equivalents, and marketable securities grew by 9% to $8.2 billion as of March 31, 2022.
• 6Vertex continues to expand its clinical pipeline with a focus beyond CF, initiating or advancing trials for sickle cell disease, beta thalassemia, APOL1-mediated kidney disease, and pain.
• 7Share repurchases were minimal in Q1 2022, with $499.7 million remaining authorized under the 2021 Share Repurchase Program.

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