Vertex-VRTX's Q4 Earnings Miss Mark, Revenues Beat on Higher Product Sales

Core Viewpoint - Vertex Pharmaceuticals reported mixed financial results for Q4 2024, with adjusted earnings slightly missing estimates while total revenues exceeded expectations, driven by strong sales of its cystic fibrosis products, particularly Trikafta/Kaftrio [1][2][3]. Financial Performance - Adjusted earnings for Q4 2024 were $3.98 per share, missing the Zacks Consensus Estimate of$ 3.99, and reflecting a 5.2% decline year-over-year [1] - Total revenues for the quarter reached $2.91 billion, surpassing the Zacks Consensus Estimate of$ 2.77 billion, and representing a 16% increase year-over-year [2] - Net product sales in the U.S. rose 17% to $1.84 billion, while international sales increased 14% to$ 1.07 billion [3] - Trikafta sales amounted to $2.72 billion, up 16.6% year-over-year, exceeding both the Zacks Consensus Estimate and internal model estimates [3] Product Performance - Vertex markets four cystic fibrosis products, with Trikafta being the primary revenue driver [3] - Sales from other CF products increased 3.7% year-over-year to$ 191.2 million, although these products have seen a decline in sales as patients switch to Trikafta [4] - The company recorded $8 million in sales from its newly approved gene therapy, Casgevy, during the quarter [6] Research and Development - Adjusted R&D expenses rose 28.8% year-over-year to$ 899.8 million due to increased investment in clinical studies [7] - Adjusted SG&A expenses increased 8.6% to $310.1 million, attributed to the commercial launch of Casgevy and Journavx [7] - Acquired in-process R&D costs were$ 87.5 million, significantly higher than the $17.8 million reported in the previous year [8] Full-Year Results and Guidance - For 2024, Vertex generated total revenues of$ 11.02 billion, reflecting a 12% growth year-over-year [9] - The company expects total product sales for 2025 to be in the range of $11.75-$ 12 billion, with a consensus estimate of $11.72 billion [10] New Product Approvals - The FDA approved Journavx, a non-opioid pain signal inhibitor, for treating moderate-to-severe acute pain, marking a significant milestone as the first new class of pain medicine approved in over 20 years [11] - Alyftrek, a new CFTR modulator therapy, was approved for treating cystic fibrosis in December 2024, potentially offering enhanced benefits over Trikafta [12][13] Pipeline Developments - Vertex is advancing its pipeline in various disease areas, including APOL1-mediated kidney diseases and type I diabetes [18] - The acquisition of Alpine in May 2024 added povetacicept to Vertex's pipeline, which is being investigated for multiple autoimmune diseases [19]