Vertex Pharma Raises Annual Forecast On Strong Uptake For Cystic Fibrosis Drug, Analysts Says Investors' Focus On Non-CF Pipeline

Vertex Pharmaceuticals Inc's VRTX Q2 sales increased 14% to $2.49 billion, beating the consensus of $2.41 billion.

The increase was driven by the strong uptake of Trikafta/Kaftrio, including the launch in children with cystic fibrosis (CF) 2 to 5 years of age.

The company reported Q2 adjusted EPS of $3.89, up from $3.60 a year ago, while analysts estimated $3.88 per share.

ITs gene-editing therapy for sickle cell disease, in collaboration with CRISPR Therapeutics AG CRSP, is currently under FDA review with an action date of December 8.

Guidance: The company now sees full-year sales from its CF treatments to be between $9.7 billion-$9.8 billion, from a prior forecast of $9.55 billion to $9.7 billion. 

Analyst Comments:

BMO Capital Markets remain positive on Vertex's programs in Type 1 diabetes and pain as supportive of longer-term growth beyond CF. On T1D, the program appears to be progressing quickly, with both VX-880 and VX-264 now in the clinic. 

Analyst Evan David Seigerman says the earnings call provided additional clarity on the company's strategy for commercial execution for its pain assets. Management highlighted that a safe and effective non-opioid pain medicine would likely see support from policymakers.

Analyst raises price target to $389 from $385 with an Outperform rating.

HC Wainwright remains focused on Vertex's diabetic neuropathic pain program, as the company announced a potential readout of the Phase 2 program either in late 2023 or early 2024. 

Analysts Ananda Ghosh, Matthew Caufield, and Andres Maldonado reiterate the Buy rating.

Needham analyst Joseph Stringer reaffirms the Hold rating for VRTX stock, saying the investor focus over the next several months will likely be on the upcoming regulatory developments from the exa-cel program in SCD/TDT, the pivotal Ph3 acute pain readout in 1Q24, and the once-daily triple CF Ph3 readout in 1Q24. 

The CF sales continue to impress but await non-CF pipeline progression, the analyst notes.

Price Action: VRTX shares are up 3.05% at $358.35 on the last check Wednesday.