Vertex PharmaceuticalsVRTX

Vertex brought in $3.33 billion in revenue last quarter, beating the $3.23 billion analysts expected. While earnings of $4.73 per share were essentially in line with estimates, the company raised its full-year sales forecast to as much as $13.2 billion. This growth is still powered by its treatments for cystic fibrosis, a genetic lung disease where Vertex holds a dominant market position.

The company is also moving into new areas. It is preparing to launch a new pain medication and expects a regulatory decision on povetacicept, a treatment for kidney disease, by late November. By acquiring Crinetics Pharmaceuticals, Vertex is adding a fifth major area of focus in endocrine diseases, which affect the body's hormones. This shift helps reduce the company's reliance on a single disease and uses its large cash reserves to build a broader portfolio of drugs.

See the full quarter, and how our tracked metrics did

Source: 8-K filing

Key highlights

• Revenue outlook raised: Management raised its full year revenue guidance to a range between $13.1 billion and $13.2 billion, up from the prior forecast of $12.95 billion to $13.1 billion. This increase signals confidence that new treatments for pain and blood disorders will contribute at least $500 million to total sales this year.
• Cystic fibrosis growth continues: Revenue from cystic fibrosis treatments grew 11% to $3.21 billion compared to the same period last year, led by the rapid uptake of the newer drug Alyftrek. The company expanded patient access by securing insurance coverage in four more countries, bringing the total to 25 countries where the drug is reimbursed.
• Pain drug gaining traction: The newly launched pain medication Journavx generated $50 million in sales this quarter, more than quadrupling the $12 million it earned a year ago. Roughly 535,000 prescriptions were filled during the quarter as the company signed deals with major pharmacy benefit managers, companies that manage prescription drug benefits for insurers, to cover the drug for 260 million people.
• Major acquisition announced: Vertex agreed to acquire Crinetics Pharmaceuticals for $85.00 per share in cash, a deal valued at approximately $8.8 billion after accounting for the cash Crinetics already holds. This purchase adds a new category of medicines for rare hormone diseases to the company's lineup, though it is not yet reflected in the current financial guidance.
• Operating expenses rising: Total operating expenses reached $1.6 billion this quarter, up from $1.4 billion a year ago. The company is spending more to build out its sales teams for the launch of its pain drug and to prepare for the potential approval of povetacicept, a kidney disease treatment with an FDA decision date of November 30, 2026.

Our take: This was a strong quarter that showed the company is successfully moving beyond its core cystic fibrosis business. The rapid sales growth for Journavx and the expanded approval for Casgevy prove the company can win in new markets. These results strengthen the case for owning a diversified biotech leader.