Analyst Conference Summary

Biotechnology

conference date: August 4, 2025 @ 1:30 PM Pacific Time
for quarter ending: June 30, 2025 (second quarter, Q2 2025)

Forward-looking statements

Overview: Strong revenue growth.

Basic data (GAAP):

Revenue was $2.96 billion, up 7% sequentially from $2.77 billion, and up 12% from $2.65 billion in the year-earlier quarter.

Net income was $1.03 billion, up 60% sequentially from $646 million and up from negative $3.59 billion year-earlier.

Diluted Earnings Per Share (EPS) were $3.99, up 60% sequentially from $2.49 and up from negative $13.92 year-earlier.

Guidance:

Reiterated for 2025: revenue $11.85 to $12.0 billion.

Conference Highlights:

Reshma Kewalramani, CEO, said "Vertex delivered a strong quarter of revenue growth with each of our three product launches — Alyftreka, Journavx, and Casgevy — contributing, as well as continued advancement of our clinical programs. As we enter the second half of the year, we are focused on expanding leadership in cystic fibrosis, executing the launches, advancing the pipeline, and preparing for submissions and commercialization in additional disease areas. I would like to express my deep gratitude to David for his exceptional scientific vision and patient impact over the last 13 years. As CSO, David has been at the helm through the discovery, development and approval of four CF medicines, our groundbreaking CRISPR/Cas9 gene-edited therapy, and our novel non-opioid pain medicine. As part of the planned transition, I am delighted that Mark Bunnage, current SVP and Head of Global Research, will be the next CSO. He is a world-class scientist with long tenure at the company who has contributed enormously to our R&D success, working alongside David since 2016 and heading up discovery research since March 2024. Mark is the ideal leader to drive the next wave of innovation"

In Q2 2025 Alyftrek for cystic fibrosis was approved by the European Commission. In July by Canada. Reviews are underway in Switzerland, Australia, and New Zealend.

In Q2 2025 Vertex completed enrollment of children 5 to 11 years old with SCD or TDT in two global Phase 3 studies of Casgevy. On track to complete dosing in the second half of 2025.

In Q2 2025 the Phase 2 trial of VX-993 for pain failed. The drug will not advance further for acute pain. However, will continue development for PNP (peripheral neuropathic pain) in Phase 3 trials.

Ximislecel for type 1 diabetes is now in a Phase 3 trial.

Other trials are underway in Povetacicept for IgAN, pMN; AMKD, and DM1.

In Q3 2025 the VX-522 Phase 1/2 trial was approved to resume.

Journavx for pain and Casgevy launches are going well.

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.

VX-828 combo for CF preclinical work shows it could be the best CF therapy ever. Phase 1 trial should complete 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 Q3 2025.

Non-GAAP results: Net income $1.17 billion, up 11% sequentially from $1.054 billion, and up from negative $3.31 billion year-earlier. EPS $4.52, up 11% sequentially from $4.06, and up from from negative $12.83 year-earlier.

No breakdown of revenue for Syhmdeko, Orkambi, or Kalydeco. Lumped them into Other.

See also the Vertex Pharmaceuticals Pipeline page.

Cash and equivalents balance ended at $12.0 billion, sequentially from $na. No debt. Bought back shares in Q2 2025 and authorized more.

Cost of sales was $408 million. Research and development expense was $978 million. Sales, general and administrative expenses were $425 million. Acquired in-process R&D $2 million; Change in contingent consideration $1 million. Intangible asset impairment charge $0 million. Total costs and expenses were $1.81 billion, leaving operating income of $1.15 billion. Interest income net $118 million. Other income $13 million. Income taxes $250 million.

Q&A selective summary:

Journavx coverage? Pleased with payer coverage and hospital formularies. Incredibly positive feedback from physicians. So spending more on marketing and field support.

The first Phase 3 VPN might complete enrollment in front of the second. Is going well.

Absent broad PNP label, plan? Our goal is to get a broad PNP indication. Conversation with FDA was productive, but they do not see a path to PNP. But agreed on BPN. Then could broaden to other neuropathies like small fiber.

Journavx Gross to net? Was elevated early on, but should improve over the year.

Povi launch? Plan to launch with the autoinjector in IgAN. Povi has a dual inhibition mechanism, for both B cells and plasma cells. Unmet need is high. Povi should be best in class, so should do well against competition.

OpenIcon
Analyst Conference Summaries Main Page

Search

More Analyst Conference Pages: