BOSTON - Vertex Pharmaceuticals (NASDAQ:VRTX) Incorporated (NASDAQ: VRTX) reported a robust first quarter for 2024, surpassing analyst expectations with a 13% increase in product revenue and a significant earnings beat.
The company's earnings per share (EPS) of $4.76 outperformed the analyst estimate of $4.08. Total revenue for the quarter reached $2.69 billion, exceeding the consensus estimate of $2.58 billion and marking a significant rise from the $2.38 billion reported in the first quarter of 2023.
The positive earnings news prompted a 1.4% uptick in Vertex's stock price, indicating investor approval of the company's financial performance. The driver behind the stock's ascent was the earnings beat, as stated by the company.
In the first quarter, Vertex's product revenue growth was primarily fueled by the ex-U.S. market performance of its cystic fibrosis drug TRIKAFTA/KAFTRIO, including its expanded use in younger patients, and the steady U.S. sales, particularly among children aged 2 to 5. U.S. net product revenue saw an 8% increase to $1.52 billion, while international revenue surged by 21% to $1.17 billion compared to the same period last year.
Vertex's CEO and President, Reshma Kewalramani, M.D., highlighted the company's strong start to the year, noting, "Vertex delivered a strong start to 2024 with 13 percent product revenue growth and outstanding execution across the business."
She added that the company is looking forward to the potential of povetacicept, a Phase 3-ready asset acquired through the recent purchase of Alpine Immune Sciences (NASDAQ:ALPN).
On the expense side, combined GAAP and adjusted research and development (R&D), Acquired IPR&D, and selling, general and administrative (SG&A) expenses were down compared to the first quarter of 2023, attributed to lower Acquired IPR&D expenses.
The company's GAAP and adjusted net income both saw significant jumps of 57% and 56%, respectively, from the first quarter of the previous year, driven mainly by the increase in product revenues and a decrease in Acquired IPR&D expenses.
Looking ahead, Vertex reiterated its full-year 2024 financial guidance, projecting product revenue to be between $10.55 billion and $10.75 billion, aligning with the analyst consensus of $10.718 billion. The guidance reflects expectations for continued cystic fibrosis growth and the launch of CASGEVY in approved indications and geographies.
The company's cash, cash equivalents, and total marketable securities stood at $14.6 billion as of March 31, 2024, an increase from the end of the previous year, primarily due to strong revenue-driven cash flow, offset by business development payments and stock repurchases.
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