Analyst Conference Summary

Biotechnology

conference date: August 3, 2026 @ 1:30 PM Pacific Time
for quarter ending: June 30, 2026 (second quarter, Q2 2026)

Forward-looking statements

Overview: Strong revenue growth, raised 2026 guidance.

Basic data (GAAP):

Revenue was $3.33 billion, up 11% sequentially from $2.99 billion, and up 12% from $2.96 billion in the year-earlier quarter.

Net income was $1.10 billion, up 7% sequentially from $1.03 billion and up 7% from $1.03 billion year-earlier.

Diluted Earnings Per Share (EPS) were $4.31, up 7% sequentially from $4.02 and up 8% from $3.99 year-earlier.

Guidance:

Raised 2026 revenue estimate, now $13.1 to $13.2 billion.

Conference Highlights:

Reshma Kewalramani, CEO, said "Vertex delivered excellent second quarter results, expanding our leadership in cystic fibrosis; delivering strong revenue growth in sickle cell disease, beta thalassemia, and acute pain; and with the pending acquisition of Crinetics, adding rare endocrine diseases as our fifth pillar, further diversifying our portfolio. With this breadth of commercial and clinical opportunities, we look forward to bringing more medicines to more patients around the globe and in so doing, creating long-term value."

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 2 to 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.

VX-017 insulin producing cell, for any blood type, will begin a Phase 1/2 trial soon. Zimislecel Phase 3 has resumed dosing.

Believes Journavx for pain has great opportunities for revenue growth. Added 18 thousand new subscribers in Q2 2026, and added new payers.

In Q3 2026 Vertex and Crinetics Pharmaceuticals entered into a definitive agreement for Vertex to acquire Crinetics for $85.00 per share in cash, or approximately $10.0 billion, or approximately $8.8 billion net of estimated cash acquired. The transaction is expected to close in Q3 2026. Crinetics already launched Palsonify for acromegaly in late 2025.

In Q2 new positive Alyftrek Phase 3 data for CF for children aged 2 to 5 was presented. Will make regulatory submissions for this age group. Added 4 additional nations to reimbursements for earlier label.

Vertex continues to evaluate VX-828, a next-generation 3.0 CFTR corrector class, in a proof-of-concept study in people with CF. Completed dosing in this study, will share results in 2H 2026.

In Q2 2026 VX-670 Phase 1/2 clinical trial for DM1 (Myotonic Distrophy Type 1) completed enrollment. Results likely before end of 2026.

Inaxaplin for AMKD results due in early 2027.

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. PFUFA November 30, 2026. A Phase 2/3 study continued for pMN, with Phase 2b dosing complete in Q2 206. Started Phase 2 study in myasthenia gravis in Q2 2026. Planning marketing campaign.

In 2Q 2026 Journavx for paid submission to Health Canada was accepted, review is underway. Continues studies in peripheral neuropathic pain and in acute pain.

Non-GAAP results: Net income $1.21 billion, up 5% sequentially from $1.15 billion, and up 3% from $1.17 billion year-earlier. EPS $4.73, up 6% sequentially from $4.47, and up 5% from from $4.52 year-earlier.

See also the Vertex Pharmaceuticals Pipeline page.

Cash and equivalents balance ended at $13.6 billion, up sequentially from $13.0 billion. No debt. There was a small share buy back in the quarter.

Cost of sales was $489 million. Research and development expense was $994 million. Sales, general and administrative expenses were $582 million. Acquired in-process R&D $21 million; Change in contingent consideration $0.4 million. Total costs and expenses were $2.09 billion, leaving operating income of $1.25 billion. Interest income net $121 million. Other income $24 million. Income taxes $292 million.

Q&A selective summary:

Povi Phase 3 80 mg dose in pMN? Phase 2 completed a couple of months ago. We don't have access to the unblinded data. So PBMA picked the dose.

Pain bottlenecks for formularies and payers? Trying to transform of how pain is treated with opioids. Pleased with progress, broad range of physician types and pain types on label. 2 Medicare Part D plans coming in, but more work to do. Sees growth in 2026 and normalizing gross-to-net. Focus has been on acute pain.

VX-828 and other next gen? Looking for improved efficacy and safety. Once daily dosing would be important.

EGFR differentiation with Povi? In IgAN in particular good reductions in proteinuria should result in stabilization in EGFR. It is really about time to ESRD, dialisis, transplant, or death. GFR is an endpoint on the way to this real differentiation.

Journavx (suzetrigine)competitors? We were first, we have a lot of followers, we think it will be hard to beat Journavx, except for our own follow up.

Povi has the best proteinuria reduction out there, which bodes well. Once monthly with an autoinjector. Should appeal to patients.

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