Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) announced its consolidated financial performance for the first quarter ended March 31, 2024, while reaffirming its full-year 2024 financial outlook.
Reshma Kewalramani, M.D., Chief Executive Officer and President of Vertex, expressed satisfaction with the robust beginning to 2024, citing a 13 percent increase in product revenue and exemplary operational execution. Notable achievements included furthering their leadership in cystic fibrosis (CF), advancing the global launch of CASGEVY™, and initiating the submission process for suzetrigine in moderate-to-severe acute pain. Kewalramani also highlighted the recent acquisition of Alpine Immune Sciences, emphasizing the strategic synergy and the potential of povetacicept, a promising treatment for IgAN.
Key Highlights from Q1 2024:
- Product revenue surged by 13% to $2.69 billion, primarily propelled by strong uptake of TRIKAFTA®/KAFTRIO® in ex-U.S. markets and sustained performance of TRIKAFTA in the U.S.
- Net product revenue saw an 8% increase to $1.52 billion in the U.S. and a 21% rise to $1.17 billion outside the U.S. compared to Q1 2023.
- Combined GAAP and Non-GAAP expenses for Research & Development (R&D), Acquired IPR&D, and Selling, General, and Administrative (SG&A) totaled $1.2 billion and $1.0 billion, respectively, reflecting focused investments to support global therapy launches and advance clinical programs.
- GAAP effective tax rate declined to 14.0% from 21.5% in Q1 2023, primarily due to income tax reserve adjustments and tax benefits related to stock-based compensation.
- Non-GAAP effective tax rate stood at 17.4%, down from 21.3% in Q1 2023, largely due to a discrete adjustment to income tax reserves.
Financial Outlook for FY 2024:
- Vertex reaffirmed its full-year 2024 financial guidance, including product revenue projections of $10.55 to $10.75 billion.
- Combined Non-GAAP R&D, Acquired IPR&D, and SG&A expense guidance remained at $4.3 billion to $4.4 billion, reflecting ongoing investments in clinical development programs and commercial capabilities.
Key Business Highlights:
- Cystic Fibrosis Portfolio: Vertex anticipates continued growth in CF patient numbers through new approvals and reimbursement initiatives, including the recent approval of KALYDECO for infants in Europe and progress with the vanzacaftor triple combination.
- CASGEVY for Sickle Cell Disease and Transfusion-Dependent Beta Thalassemia (TDT): Vertex reported approvals and progress in multiple regions, including activation of treatment centers and agreements with insurance providers for access.
- Suzetrigine for Moderate-to-Severe Acute Pain: Positive results from Phase 3 trials were shared, and Vertex initiated the rolling submission process for FDA approval, aiming for completion in Q2 2024.
Vertex remains committed to advancing its pipeline and delivering innovative therapies to patients worldwide, guided by its strategic vision and financial prudence.
