Analyst Conference Summary

Biotechnology

conference date: May 4, 2026 @ 1:30 PM Pacific Time
for quarter ending: March 30, 2026 (first quarter, Q1 2026)

Forward-looking statements

Overview: Continuing good y/y revenue growth.

Basic data (GAAP):

Revenue was $2.99 billion, down 6% sequentially from $3.19 billion, and up 8% from $2.77 billion in the year-earlier quarter.

Net income was $1.03 billion, down 13% sequentially from $1.19 billion and up 59% from $646 million year-earlier.

Diluted Earnings Per Share (EPS) were $4.02, down 14% sequentially from $4.65 and up 61% from $2.49 year-earlier.

Guidance:

Unchanged. (2026 revenue $12.95 to $13.1 billion)

Conference Highlights:

Reshma Kewalramani, CEO, said "Vertex is off to a strong start in 2026, driven by leadership in cystic fibrosis; growth in sickle cell disease, beta thalassemia, and acute pain; as well as rapid pipeline progress. Casgeny and Journavx delivered more than 25 percent of our growth this quarter, underscoring the strength of the increasingly diversified revenue base. As we execute across the commercial portfolio and pipeline and build our fourth franchise in nephrology, Vertex is poised to continue to deliver for patients and create long-term value." Seemed particularly excited about the future for Povetacicept.

In Q2 2026 the FDA approved label extensions for Alyftrex and Trikafta, expanding availability of these medicines to approximately 95% of all people with CF in the United States. This label expansion was supported by clinical and/or in vitro data. Reimbursement for Alyftrex was finalized in Scotland, Spain, Sweden, Switzerland, New Zealand, Israel, and Finland. Continues work for children under 5 years.

In Q2 2026 Vertex completed the regulatory submission in the U.S. for approval of Casgevy in children ages 5 to less than 12 years old with Sickle Cell Disease or TDT (thalassemia).

In Q2 2026 VX-522 mRNA program for CF ws discontinued due to tolerability issues. Was developed by Moderna.

Journavx for pain is gaining payer coverage and new prescribers. Believes will triple prescriptions in 2026.

Trials are underway in Povetacicept for IgAN, pMN (membranous nephropathy), AMKD, and DM1. The FDA granted Breakthrough Therapy Designation in Q3 for IgAN. Phase 3 enrollment completed in Q4, and a rolling BLA submission began in December 2025. In March 2026 the Phase 3 data interim readout was positive with very low adverse events (Vertex called it a home run). A Phase 2/3 study continued for pMN. Plans Phase 2 study in myasthenia gravis started in Q2 2026. Planning marketing campaign. AMKD results due in early 2027.

In Q4 2025 Vertex was enrolling and dosing a Phase 1 study of VX-581, another corrector in the next-generation 3.0 class for CF, in healthy volunteers.

Non-GAAP results: Net income $1.15 billion, down 11% sequentially from $1.29 billion, and up 10% from $1.05 billion year-earlier. EPS $4.47, down 11% sequentially from $5.03, and up 10% from from $4.06 year-earlier.

See also the Vertex Pharmaceuticals Pipeline page.

Cash and equivalents balance ended at $13.0 billion, up sequentially from $12.3 billion. No debt. There was a small share buy back in the quarter.

Cost of sales was $393 million. Research and development expense was $962 million. Sales, general and administrative expenses were $494 million. Acquired in-process R&D $0.5 million; Change in contingent consideration $0.2 million. Total costs and expenses were $1.848 billion, leaving operating income of $1.138 billion. Interest income net $115 million. Other expense $0 million. Income taxes $222 million.

Q&A selective summary:

Renal potential to rival CF program in revenue? We have 3 assets, for 4 diseases. These diseases are common rare diseases, so total hundreds of thousands of patients in just the western world. Without better therapies renal functions decline, leading to dialysis, which is very expensive.

Competition in reduction in proteinuria? Our results were better.

Povetacicept, what is the argument to nephrologists to overcome the first mover advantages of competitors? We have incredible clinical data, including attractive dosing, administration by autoinjector, and tolerability. Patients prefer monthly dosing to weekly dosing. We think Povetacicept is best in class.

Pain, would an IV medicine make sense? Yes, we are looking at that.

We are thinking of looking at B-cell mediated diseases for treatment with Povetacicept.

Different trials (incl. competitors) for IgAN use different threshold levels and different periods of time for effectiveness. GFR is not the hard endpoint, so regulators use GFR.

Discontinuation of 522? Tolerability had to due with lung inflamation, probably in response to the LNP used to deliver it. Will find another way to help this group of patients, but the challenge is likely to be mode of delivery. These patients do not make any of the protein needed.

Journavx volume vs. revenue in quarter? Overall pleased with progress. We had some channel inventory destocking. Medicare Part D plans in Q1 lead to more abandoned prescriptions. Making progress on Medicare coverage, which will allow us to taper down our patient support program.

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