{"id":811106,"date":"2025-02-10T16:05:37","date_gmt":"2025-02-10T21:05:37","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/vertex-reports-fourth-quarter-and-full-year-2024-financial-results\/"},"modified":"2025-02-10T16:05:37","modified_gmt":"2025-02-10T21:05:37","slug":"vertex-reports-fourth-quarter-and-full-year-2024-financial-results","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/vertex-reports-fourth-quarter-and-full-year-2024-financial-results\/","title":{"rendered":"Vertex Reports Fourth Quarter and Full Year 2024 Financial Results"},"content":{"rendered":"

<\/p>\n

Vertex Reports Fourth Quarter and Full Year 2024 Financial Results<\/b><\/p>\n

\u2014 Full year product revenue of $11.02 billion, a 12% increase compared to full year 2023 \u2014<\/i><\/p>\n

\u2014 Company provides full year 2025 total revenue guidance of $11.75 to $12.0 billion \u2014<\/i><\/p>\n

\u2014 ALYFTREK\u2122 approved in the U.S. for patients ages 6+ with cystic fibrosis; JOURNAVX\u2122 approved in the U.S. for moderate-to-severe acute pain \u2014<\/i><\/p>\n

\u2014 Diverse late-stage clinical pipeline accelerates with four programs in pivotal development \u2014<\/i><\/p>\n

\u2014 Stuart Arbuckle, Chief Operating Officer, announces intent to retire July 1, 2025; as part of planned transition, Charlie Wagner, Chief Financial Officer, to assume additional role of Chief Operating Officer; Duncan McKechnie, SVP and current head of North America Commercial, to assume role of Chief Commercial Officer (CCO) \u2014<\/i><\/p>\n

BOSTON–(BUSINESS WIRE<\/a>)–
\nVertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today reported consolidated financial results for the fourth quarter and full year ended December 31, 2024, and provided its full year 2025 financial guidance.<\/p>\n

\n\u201c2024 marked a year of tremendous growth for Vertex and we anticipate 2025 will be another important year with the landmark JOURNAVX approval and launch for moderate-to-severe acute pain; the launch of our fifth CF medicine, ALYFTREK; the continuing global launch of CASGEVY; and multiple ongoing pivotal trials. We are excited to drive diversification of the revenue base, disease areas of focus, R&D pipeline, and geographies to continue to deliver long-term value to both patients and shareholders,\u201d said Reshma Kewalramani, M.D., Chief Executive Officer and President of Vertex.<\/p>\n

\nDr. Kewalramani added, \u201cI would like to express my deep gratitude to Stuart for his exceptional leadership and many contributions to Vertex over the last 13 years. Stuart has had a profound impact on Vertex, having led the launch of every one of our CF medicines; our groundbreaking CRISPR\/Cas9 gene-edited therapy, CASGEVY; and most recently, our novel non-opioid pain medicine, JOURNAVX. We are exceptionally well-positioned for continued success as Charlie assumes an expanded role, and Duncan\u2019s broad and deep 30+ years of commercial experience \u2013 including the last 12 years working closely with Stuart \u2013 make him the ideal next CCO.\u201d<\/p>\n

Fourth Quarter 2024 Results<\/span><\/b><\/p>\n

Product revenue<\/b> increased 16% to $2.91 billion compared to the fourth quarter of 2023, primarily driven by the continued performance of TRIKAFTA\u00ae<\/sup>\/KAFTRIO\u00ae<\/sup>. Net product revenue increased 17% to $1.84 billion in the U.S. due to continued strong patient demand and higher net realized pricing. Net product revenue increased 14% to $1.07 billion outside the U.S. on strong patient demand, including in both established and newer markets.<\/p>\n

Combined GAAP and Non-GAAP R&D and SG&A expenses<\/b> were $1.4 billion and $1.2 billion, respectively, compared to $1.2 billion and $984 million, respectively, in the fourth quarter of 2023. The increases were due to continued R&D investment in support of additional programs that have advanced to Phase 3 clinical development and increased commercial investment to support launches of Vertex’s new therapies globally.<\/p>\n

Acquired IPR&D (AIPR&D) expenses<\/b> were $88 million compared to $18 million in the fourth quarter of 2023.<\/p>\n

GAAP and Non-GAAP effective tax rates<\/b> were 19.7% and 21.3%, respectively, compared to 15.6% and 16.3%, respectively, for the fourth quarter of 2023. The lower effective rates in the fourth quarter of 2023 included the benefit of higher U.S. R&D tax credits.<\/p>\n

GAAP and Non-GAAP net income <\/b>were $913 million and $1.0 billion, respectively, compared to $969 million and $1.1 billion, respectively, for the fourth quarter of 2023, as increased product revenue was more than offset by increased operating expenses, lower interest income and increased tax expense compared to the fourth quarter of 2023.<\/p>\n

Full Year 2024 Results<\/span><\/b><\/p>\n

Product revenue<\/b> increased 12% to $11.02 billion compared to 2023, primarily driven by the continued performance of TRIKAFTA\/KAFTRIO. Net product revenue increased 11% to $6.68 billion in the U.S. due to continued strong patient demand and higher net realized pricing. Net product revenue increased 13% to $4.34 billion outside the U.S. on strong patient demand in both established and newer markets.<\/p>\n

Combined GAAP and Non-GAAP R&D and SG&A expenses <\/b>were $5.1 billion and $4.2 billion, respectively, compared to $4.3 billion and $3.7 billion, respectively, in 2023. The increases were due to continued R&D investment in support of additional programs that have advanced into Phase 3 clinical development and increased commercial investment to support launches of Vertex’s new therapies globally.<\/p>\n

AIPR&D expenses<\/b> were $4.6 billion compared to $527 million in 2023 due to $4.4 billion of AIPR&D expenses associated with Vertex\u2019s acquisition of Alpine Immune Sciences during 2024.<\/p>\n

GAAP and Non-GAAP effective tax rates <\/b>were 315.5% and 91.0%, respectively, compared to 17.4% and 19.4%, respectively, in 2023. The higher 2024 effective rates were primarily due to the impact of non-deductible AIPR&D expenses, which significantly lowered Vertex\u2019s pre-tax income in 2024. Please refer to Note 2 for further details on our GAAP to Non-GAAP tax adjustments.<\/p>\n

GAAP net loss and Non-GAAP net income <\/b>were $(536) million and $111 million, respectively, compared to net income of $3.6 billion and $4.0 billion, respectively, for 2023, reflecting strong operating results offset by the impact of higher AIPR&D expense related to the Alpine acquisition.<\/p>\n

Cash, cash equivalents and total marketable securities<\/b> as of December 31, 2024, were $11.2 billion, compared to $13.7 billion as of December 31, 2023. The reduction in Vertex\u2019s cash, cash equivalents and marketable securities balance compared to December 31, 2023, was due to the cash consideration paid to acquire Alpine and repurchases of our common stock pursuant to our share repurchase program, partially offset by positive cash flows provided by other operating activities.<\/p>\n

Full Year 2025 Financial Guidance<\/span><\/b><\/p>\n

\nVertex today provided full year 2025 financial guidance. Vertex\u2019s total revenue guidance of $11.75 billion to $12.0 billion includes expectations for continued growth in CF, including the U.S. launch of ALYFTREK; as well as continued uptake of CASGEVY in multiple regions; and early contributions from the launch of JOURNAVX. Vertex\u2019s guidance for both combined GAAP and Non-GAAP R&D, AIPR&D and SG&A expenses includes expectations for continued investment in multiple mid- and late-stage clinical development programs and commercial and manufacturing capabilities, and approximately $100 million of currently anticipated AIPR&D expenses.<\/p>\n

\nVertex\u2019s financial guidance is summarized below:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

FY 2025<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

Total revenue<\/b><\/p>\n<\/td>\n

\n

\n$11.75 to $12.0 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

Combined GAAP R&D, AIPR&D and SG&A expenses *<\/b><\/p>\n<\/td>\n

\n

\n$5.55 to $5.7 billion<\/p>\n<\/td>\n<\/tr>\n

\n

Combined Non-GAAP R&D, AIPR&D and SG&A expenses *<\/b><\/p>\n<\/td>\n

\n

\n$4.9 to $5.0 billion<\/p>\n<\/td>\n<\/tr>\n

\n

Non-GAAP effective tax rate<\/b><\/p>\n<\/td>\n

\n

\n20.5% to 21.5%<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\n*The difference between the combined GAAP R&D, AIPR&D and SG&A expenses and the combined non-GAAP R&D, AIPR&D and SG&A expenses guidance relates primarily to $650 million to $700 million of stock-based compensation expense.<\/p>\n<\/td>\n<\/tr>\n

\n

\n**Combined GAAP and Non-GAAP R&D, AIPR&D and SG&A expenses guidance includes approximately $100 million of AIPR&D expenses.<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

Key Business Highlights<\/span><\/b><\/p>\n

Marketed Products and Potential Near-Term Launch Opportunities<\/span><\/i><\/b><\/p>\n

Cystic Fibrosis (CF) Portfolio<\/span><\/i><\/b><\/p>\n

\nVertex anticipates the number of CF patients taking its medicines will continue to grow through new approvals, including the recent ALYFTREK approval in the U.S.; reimbursement for the treatment of younger patients; patients living longer; and expansion into additional geographies. Recent and anticipated progress includes:<\/p>\n