Vertex(US:VRTX)2025-02-13 21:01Financial Performance - Total cash, cash equivalents, and marketable securities decreased by 18% to $11.2 billion in 2024 from $13.7 billion in 2023[465] - Working capital decreased by 43% to $6.0 billion in 2024, down from $10.6 billion in 2023, primarily due to cash paid for the acquisition of Alpine[466] - Cash used in operating activities was $492.6 million in 2024, a significant decrease from cash provided of $3.5 billion in 2023, largely driven by the acquisition of Alpine[468] - Cash used in investing activities increased to $3.8 billion in 2024 from $3.1 billion in 2023, mainly due to net purchases of available-for-sale debt securities[469] - Cash used in financing activities rose to $1.5 billion in 2024 from $562.2 million in 2023, primarily related to stock repurchases and employee stock benefit plan payments[470] Taxation - The provision for income taxes was $784.1 million in 2024, with an effective tax rate of 315.5%, significantly impacted by $4.4 billion of non-deductible AIPR&D from the acquisition of Alpine[463] - The company has a liability of $706.2 million for uncertain tax positions as of December 31, 2024[504] - The company maintains a valuation allowance of $272.9 million related primarily to U.S. state tax attributes as of December 31, 2024[503] Research and Development - The company plans to continue investing in research and development programs and anticipates sharing data from ongoing clinical trials in 2025[380] - As of December 31, 2024, the company had $603.6 million of in-process research and development assets on its consolidated balance sheet[491] - The company recorded a $13.0 million impairment of an in-process research and development intangible asset in 2022 due to a revision in the scope of certain acquired programs[492] - The company began capitalizing inventories for JOURNAVX in Q1 2024 following positive Phase 3 trial results, with FDA approval received in January 2025[501] Revenue and Accruals - The company reported a balance of $1,701.6 million for product revenue accruals related to rebates as of December 31, 2023, with a provision of $3,481.4 million for 2023 sales[485] - The company made a provision of $3,673.0 million for 2024 sales, with an expected balance of $1,607.1 million for product revenue accruals by December 31, 2024[485] Acquisitions and Goodwill - The company accounted for a $5.0 billion acquisition of Alpine in 2024 as an asset acquisition, expensing $4.4 billion attributed to the lead molecule povetacicept[488] - The company has goodwill of $1.1 billion on its consolidated balance sheets as of December 31, 2024, with no business combinations accounted for during 2024[497] - The company has contingent consideration liabilities of $76.9 million and $77.4 million as of December 31, 2024 and 2023, respectively, related to Exonics[494] Share Repurchase Program - The company has $1.4 billion remaining authorization under its $3.0 billion Share Repurchase Program approved in February 2023[480] Future Capital Requirements - Future capital requirements include expected operating expenses for research and development, taxes, and royalties related to CF product sales[474] Investments - The fair value of investments in publicly traded companies was $36.6 million as of December 31, 2024, with expectations of continued fluctuations due to stock price volatility[461]