What Drove Vertex’s Revenue in 2Q15?



Revenue overview

Vertex Pharmaceuticals (VRTX) announced revenue of $166.1 million for 2Q15. The increased sales of Kalydeco resulted in better revenue growth. The Kalydeco sales were at $154.9 million, and the remaining revenue was from Incivek, royalty revenues, and collaborative revenues. In 2Q14, Kalydeco revenue was $113.1 million for 2Q14, while the revenue from Incivek, royalty revenues, and collaborative revenues were $25.4 million. Kalydeco revenue jumped ~37% on a year-over-year basis. Sequentially, the revenues increased by ~19%.

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Kalydeco outlook

Kalydeco sales have been growing over the past few quarters. Vertex is looking to expand the presence of Kalydeco into other countries, especially European countries. As a result, Vertex has applied for the drug approval and is awaiting the result from the European Union. If approved, product revenues will likely go up. In the company’s press release, Vertex said it had increased Kalydeco’s revenue projections for the full year 2015 to between $575 million and $590 million.

Investors who would like to diversify the risk and do not want to invest in Vertex directly can invest in ETFs like the iShares Nasdaq Biotechnology ETF (IBB). IBB’s portfolio includes stocks like Gilead Sciences (GILD), Amgen (AMGN), and Celgene (CELG). Investors can also invest in similar ETFs like the Health Care Select SPDR (XLV), which has a 1.08% exposure to Vertex.


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