Get all your news in one place.
100’s of premium titles.
One app.
Start reading
Investors Business Daily
Investors Business Daily
Technology
ALLISON GATLIN

Vertex Raises 2022 Outlook As Powerhouse Trikafta Drives Quarterly Beat

Vertex Pharmaceuticals fulfilled expectations for a guidance raise and VRTX stock edged higher Friday.

The company boosted its full-year sales outlook by $200 million. It now expects $8.6 billion to $8.8 billion in sales of its cystic fibrosis, or CF, medicines. That was largely in line with predictions and follows a second-quarter beat, RBC Capital Markets analyst Brian Abrahams said in a report to clients.

"As expected, given recent favorable trends on ex-U.S. reimbursement and expansion into younger CF patients, Vertex raised their CF sales guidance," he said. "We believe a $200 million raise is about the order of magnitude the Street was looking for."

On today's stock market, VRTX stock advanced 4.8% to 288.03.

VRTX Stock: Sales Ratchet Higher

Overall, second-quarter earnings came in at $3.60 a share vs. expectations for $3.47, minus some items. Adjusted income climbed year over year. Sales jumped 22% to $2.2 billion. That beat the average estimate of analysts polled by FactSet for $2.13 billion.

Trikafta, Vertex's biggest moneymaker, generated $1.89 billion in sales, rocketing 51%. Analysts called for $1.81 billion to $1.86 billion, according to various analysts' reports. Needham analyst Joseph Stringer noted Trikafta is growing through the addition of patients age 6-11.

This demonstrates "the continued solid market position in CF," RBC's Abrahams said. Though, he noted, another cystic fibrosis treatment from Vertex, called Orkambi, came in below forecasts. It's likely Orkambi patients are switching to Trikafta, however. Trikafta can treat 90% of patients with the lung disease.

Abrahams kept his sector perform and 269 price target on VRTX stock.

Follow Allison Gatlin on Twitter at @IBD_AGatlin.

Sign up to read this article
Read news from 100’s of titles, curated specifically for you.
Already a member? Sign in here
Related Stories
Top stories on inkl right now
One subscription that gives you access to news from hundreds of sites
Already a member? Sign in here
Our Picks
Fourteen days free
Download the app
One app. One membership.
100+ trusted global sources.