Analyst Conference Summary

Biotechnology

conference date: November 2, 2026 @ 1:30 PM Pacific Time
for quarter ending: September 30, 2026 (third quarter, Q3 2026)

Forward-looking statements

Overview: solid revenue quarter, profits down on acquisition costs

Basic data (GAAP):

Revenue was $3.44 billion, up 3% sequentially from $3.33 billion, and up 12% from $3.08 billion in the year-earlier quarter.

Net income was $654 million, down 41% sequentially from $1.10 billion and down 39% from $1.08 billion year-earlier.

Diluted Earnings Per Share (EPS) were $2.56, down 41% sequentially from $4.31 and down 39% from $4.20 year-earlier.

Guidance:

Raised full year revenue guidance sligtly to $13.25 billion.

Conference Highlights:

Reshma Kewalramani, CEO, said "Vertex delivered excellent third quarter results marked by strong revenue growth across the increasingly diversified portfolio, continued advancement of the R&D pipeline, and the successful close of the Crinetics Pharmaceuticals acquisition. With the potential povetacicept approval in IgAN coming later this month, we are well positioned to establish nephrology as our fifth commercial franchise and expand the reach of our transformative medicines to even more patients."

Expenses in Q3 increased primarily due to commercial investment to support build-out of the renal franchise, led by povetacicept in IgAN; the addition of Crinetics Pharmaceuticals; and investment to support the ongoing launch of Journavx in acute pain.

In Q3 2026, in September, Vertex and Crinetics Pharmaceuticals closed 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. Crinetics already launched Palsonify for acromegaly in late 2025.

In Q3 2026, in July, Vertex entered into a collaboration with AbCellera. Vertex made a $28 million upfront payment.

In Povetacicept for IgAN, the FDA PFUFA is November 30, 2026. Planning marketing campaign.

In Q3 2026 Casgevy was approved by the FDA for children ages 2 to 12 years old with Sickle Cell Disease or TDT (thalassemia). Other nations have approved it for youths, or are in the process.

In Q3 2026 Vertex announced positive results from the Phase 2b study of inaxaplin in people with AMKD with modest proteinuria and people with AMKD and Type 2 diabetes.

A Phase 3 trial of atumelnant for congenital adrenal hyperplasia is underway.

In Q3 2026 Vertex completed enrollment in the Phase 2 trial of VX-407 for ADPDK (Autosomal Dominant Polycystic Kidney Disease).

In Q3 2026 Vertex completed enrollment in the Phase 1/2 trial of VX-670 for myotonic dystrophy type 1.

In Q3 2026 VX-017 insulin producing cell, for any blood type, began a Phase 1/2 trial. The FDA granted Fast Track designation to VX-017.

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, and read out positive results in Q4 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.

Trials are underway in Povetacicept for pMN (membranous nephropathy), AMKD, and DM1.

Non-GAAP results: Net income $1.21 billion, flat % sequentially from $1.21 billion, and down 2% from $1.24 billion year-earlier. EPS $4.76, up 1% sequentially from $4.73, and down 1% from from $4.80 year-earlier.

See also the Vertex Pharmaceuticals Pipeline page.

Cash and equivalents balance ended at $9.8 billion, down sequentially from $13.6 billion. In Q3 borrowed cash for acquisition while borrowing $4.5 billion. There was a small share buy back in the quarter.

Cost of sales was $526 million. Research and development expense was $1.32 billion. Sales, general and administrative expenses were $844 million. Acquired in-process R&D $41 million; Change in contingent consideration $4 million. Total costs and expenses were $2.73 billion, leaving operating income of $713 million. Interest income net $82 million. Other expense $12 million. Income taxes $130 million.

Q&A selective summary:

Povetacicept requirements? Citizen's petition was anonymous. We think the label discussions with the FDA are going well. Igg levels should be based on what we saw in our trials. There were no opportunistic infections in our trial, and other infections were in line with the placebo group.

Amplitude study goals? It conclused full enrollment and interim analysis. GFR slope, we are looking for statistical significance. Proteinuria should be about the same in Phase 2 and 3 trials.

Inaxaplin confidence? Program and GFR endpoint, looking for substantial reductions in proteinurea, which is linked to results in GFR. AMKD progresses rapidly. So overall, quite confident.

DPN and pain? VX 548 and VX 993 both on track to complete enrollment with results mid 2027. Looking to beat placebo.

For Povetacicept we are waiting of full 2 year data, though the FDA would except one year data, because that would enable global registration.

Journavx revenue growth? Pleased so far. It is hard to get people to change prescribing behavior for a pain killer. Negotiated agreements to get access to full population are important. So far about 82% of managed patients are covered. Gross to net should stabilize at about 50% to 60%.

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