VRTX Stock: Guidance Upbeat After Quarterly Profit Beat, Sales In Line

Vertex Pharmaceuticals (VRTX) offered an upbeat outlook Tuesday for its bread-and-butter cystic fibrosis medicines, but VRTX stock fell on sales that just met forecasts.

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During the December quarter, adjusted Vertex earnings rocketed 25% to $3.76 per share, above the Street’s forecast for $3.53. Sales came in at $2.3 billion vs. expectations for $2.31 billion, according to FactSet.

In response, VRTX stock slipped 0.5% to near 307 in after-hours action. During regular trading on the stock market today, shares inched 1.2% higher and closed at 308.54.

VRTX Stock: Trikafta Drives Growth

Unexpectedly, the best growth during the quarter came from Vertex’s triple regimen for cystic fibrosis, Trikafta. Revenue from that drug surged more than 19% to $2.02 billion. That was just ahead of analysts’ call for $1.97 billion.

Meanwhile, sales of Vertex’s other cystic fibrosis treatments slipped. The company credits this to patients’ decision to switch to Trikafta from older medicines. Trikafta can treat 90% of patients with the lung condition.

Vertex also confirmed partner Crispr Therapeutics (CRSP) is on track to finish submitting its application for a gene-editing approach to sickle cell disease and beta thalassemia by the end of March. If the Food and Drug Administration approves it, the drug will be the first to use CRISPR gene editing to hit the market.

Analysts following VRTX stock are also closely watching the company’s efforts in pain, diabetes and diseases of the liver and kidneys.

“Our progress in 2022 lays the foundation for treating more people with cystic fibrosis, launching multiple new therapies in the near term, achieving important clinical milestones and driving continued significant growth for many years to come,” Chief Executive Reshma Kewalramani said in a written statement.

Guidance Upbeat On CF Drugs

For the year, Vertex guided to $9.55 billion to $9.7 billion in sales of its cystic fibrosis treatments. The midpoint of the company’s guidance is above VRTX stock analysts’ call for $9.55 billion in product sales.

The guidance includes expectations that Trikafta will gain FDA approval in children age 2-5.

“We expect more color on the call on the degree to which this represents continued (cystic fibrosis) patient growth as the company makes continued gains across younger patients and garners additional international reimbursements vs. any potential contribution from an initial bolus of (sickle cell or beta thalassemia) patients,” RBC Capital Markets analyst Brian Abrahams said in a report.

He has a sector perform rating and 303 price target on VRTX stock.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

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