Financial performance in 3Q17
In 3Q17, Vertex Pharmaceuticals (VRTX) reported revenues of ~$550 million, a YoY (year-over-year) growth of 34%. That was mainly driven by a strong demand for its CF (cystic fibrosis) drugs. While its product revenues have consistently grown quarter-over-quarter in 2017, it expects to see the trend continue in 2018 due to the launch of new therapies such as the tezacaftor/ivacaftor combination regimen and new reimbursement agreements in international markets.
In 3Q17, Orkambi reported revenues of ~$336 million, a YoY rise of 43.5%, driven mainly by increased demand from CF patients ages six to 11 years old in the United States. Kalydeco reported revenues of ~$213 million in 3Q17, a YoY rise of 21%, attributable to robust demand from CF patients in the United States who have residual function mutations. This comes in the aftermath of FDA (U.S. Food & Drug Administration) approval on August 1, 2017, which expanded Kalydeco’s use in 600 CF patients ages two or older and having one of the five residual function mutations. This abnormality leads to a splicing defect in the patient’s cystic fibrosis transmembrane conductance regulator (or CFTR) gene. On May 17, 2017, the FDA expanded Kalydeco’s label to include treatment of CF patients with 33 rare gene mutations.
Vertex Pharmaceuticals makes up 0.14% of the Vanguard Total Stock Market ETF (VTI).
Analyst recommendations for Vertex Pharmaceuticals
Of the 27 analysts covering Vertex Pharmaceuticals in January 2018, ten have recommended a “strong buy,” while 13 have recommended a “buy,” and four have recommended a “hold.”
Analyst recommendations for peers
Of the 26 analysts covering Amgen (AMGN) stock in December 2017, 42.3% recommend a “buy.” About 48.3% of the 29 analysts covering Gilead Sciences (GILD) stock recommend a “buy,” and 60% of the ten analysts tracking Exelixis (EXEL) recommend a “buy.”
In the next part, we’ll look at the revenue growth prospects for Vertex Pharmaceuticals.