Vertex Pharmaceuticals
VRTX
conference date: May 5, 2025 @ 1:30 PM Pacific Time
for quarter ending: March 31, 2025 (first quarter, Q1 2025)

Forward-looking statements
Overview: Revenue growth slowing.
Basic data (GAAP):
Revenue was $2.77 billion, down 5% sequentially from $2.91 billion, and up 3% from $2.69 billion in the year-earlier quarter.
Net income was $646 million, down 29% sequentially from $913 million and down 41% from $1.10 billion year-earlier.
Diluted Earnings Per Share (EPS) were $2.49, down 29% sequentially from $3.50 and down 41% from $4.21 year-earlier.
Guidance:
Raised low end of 2025 revenue guidance to $11.85 to $12 billion. Otherwise reiterated. Believes tariff changes would be immaterial.
Conference Highlights:
Reshma Kewalramani, CEO, said "Vertex delivered a strong start to 2025 with notable execution across the business as we grow and diversify the revenue base, progress multiple launches and advance the R&D pipeline. We continued to expand our leadership in Cystic Fibrosis and build global momentum for Casgevy, and we launched Journavx in moderate-to-severe acute pain. With multiple programs in pivotal development including povetacicept, which continues to make rapid progress in achieving its potential as a pipeline-in-a-product, and additional programs in early and mid-stage development, Vertex is poised to continue to deliver value for years to come." Expects five new product launches over five years.
In Q1 2025 there was a $379 million intangible asset impairment charge, up from none year-earlier. There was a decrease in revenue from Russia due to the availability of an illegal substitute.
Journavx (Suzetrigine or VX-548) for acute pain NDA was approved by the FDA on January 30, 2025. In Q3 2024 started a Phase 3 trial in diabetic peripheral neuropathy. Believes addresses a multi-billion dollar market.
In Cystic Fibrosis, Alyftrek (Vanzacaftor/tezacaftor/deutivacaftor) was approved in December 2024. Good Q1 revenue. Is enrolling a Phase 3 study for children 2 to 5 years old. Hopes will become the new standard of care in CF. It will have a substantially lower royalty burden than prior CF therapies. Vertex has also completed regulatory submissions for the vanzacaftor triple in the EU, when the CHMP issued a postive opinion in Q1. United Kingdom, Canada, Australia, New Zealand and Switzerland also under review. Alyftrek will remain on patent until 2037. Believes majority of U.S. patients will switch to Alyftrek over time.
Vertex continues to work to introduce gene therapy Casgevy for sickle cell disease and transfusion-dependent beta thalassemia. In Q1 2025 England approved formal reimursement for sickle cell disease.
Work continues on VX-880 (Zimislecel) but discontinued development of VX-264 for Type 1 diabetes. Zimizlecel is now in a Phase 3 trial. Working on shielding 880 cells from the immune system.
Povetacicept for IgAN nephropathy Phase 3 study initiated in Q4 2024. Also in earlier stage studies for pMN, LN, and AAV.
VX-522, a CFTR mRNA therapy multiple ascending dose portion of Phase 1/2 was paused in Q1 2025 "to assess a tolerability issue." Hade expected top line data in H1 2025. Partnered with Moderna. For about 5,000 CF patients who cannot benefit from CFTR modulators.
VX 993, the next generation Nav1.8 pain inhibitor, is in Phase 1 with an IV formulation, which initiated a Phase 2 oral study in Q3 2024.
Inaxaplin is in Phas 2 and 3 studies for APOL1 mediated kidney disease.
VX-828 combo for CF preclinical work shows it could be the best CF therapy ever. Clinical trials could begin in 2025.
VX-407 for ADPKD (kidney with mutant PKD1 genes) completed the Phase 1 trial in healthy volunteers in Q1 2025. A Phase 2 study should start in 2025.
Non-GAAP results: Net income $1.054 billion, up 1% sequentially from $1.04 billion, and down 15% from $1.24 billion year-earlier. EPS $4.06, up 2% sequentially from $3.98, and down 15% from from $4.76 year-earlier.
No breakdown of revenue for Syhmdeko, Orkambi, or Kalydeco. Lumped them into Other.
Revenue
$ millions |
Q1 2025 |
Q4 2024 |
Q1 2024 |
y/y % change |
Trikafta |
2,536 |
2,721 |
2,484 |
2% |
Alyftrek |
54 |
0 |
0 |
na% |
Other |
171 |
191 |
207 |
-17% |
See also the Vertex Pharmaceuticals Pipeline page.
Cash and equivalents balance ended at $ billion, flat sequentially from $11.2. No debt.
Cost of sales was $363 million. Research and development expense was $980 million. Sales, general and administrative expenses were $396 million. Acquired in-process R&D $20 million; Change in contingent consideration $2 million. Intangible asset impairment charge $379 million. Total costs and expenses were $2.14 billion, leaving operating income of $630 billion. Interest income net $117 million. Other expense $18 million. Income taxes $84 million.
Q&A selective summary:
Alyftrek reason for switches to? Sweat chloride is not routinely used in clinical practice. Prolile has data from large clinical trials, good efficacy data, more mutations treated, and once-a-day dosing.
Chronic pain timeline? Phase 2 meeting with FDA this summer for Journavx, VX-548.
Effect of expected Russia lack of sales is already in the guidance.
Journavx launch, payers? Pleased with early progress. Broad retail pharmacy stocking, good discussions with payers. Good early traction among physicians. Lots of different payers in the U.S., different rules, looking for coverage in line with the label, and affordable for patients. Of 3 big PBMs, one is covering already.
Journavx launch, patient types? Using in surgery, non-surgery (ankle sprains, fractures), used very broadly. Variety of physicians, surgeons and pain specialists among others.
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