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Vertex (VRTX) Q4 Earnings & Sales Beat, '22 View Upbeat

In This Article:

Vertex Pharmaceuticals Incorporated VRTX reported fourth-quarter 2021 adjusted earnings per share of $3.37, which beat the Zacks Consensus Estimate of $3.28. Earnings rose 34% year over year. Strong cystic fibrosis (“CF”) product revenues led to higher earnings for the reported quarter.

Revenues of $2.07 billion, which surpassed the Zacks Consensus Estimate of $1.99 billion, comprised fully of CF product revenues. Total product revenues rose 27% year over year, primarily driven by higher sales of Trikafta (marketed as Kaftrio in Europe).

In the trailing 12 months, shares of Vertex have lost 1.5% in comparison with the industry’s 39% decline.

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Zacks Investment Research

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Quarter in Detail

The company markets four CF products — Trikafta/Kaftrio, Symdeko (marketed as Symkevi in Europe), Orkambi and Kalydeco. VRTX currently derives total revenues from CF product sales.

CF product sales rose 16% year over year in the United States to $1.39 billion while sales outside the country surged 61% to $679 million, primarily driven by the company’s triple combination therapy, Trikafta.

Trikafta generated sales worth $1.69 billion, up 55.2% year over year driven by a high level of treatment penetration in the United States including rapid uptake in pediatric patients (6-11 years of age) and strong launches in Europe.

Vertex has now secured reimbursement agreements for Kaftrio in more than 20 countries, including new markets of Spain and the Netherlands.

Symdeko/Symkevi registered sales of $80 million for the quarter, down 37.5% year over year.

Kalydeco recorded sales of $152 million for the quarter, reflecting a 21.2% decrease year over year. Orkambi generated sales of $147 million for the reported quarter, down 31.6% from the prior-year quarter. Sales of Kalydeco, Symdeko/ Symkevi and Orkambi were hurt by patients switching to Trikafta.

Full-Year Results

For 2021, Vertex generated revenues of $7.6 billion, reflecting 22% growth year over year.

For the same period, the company reported earnings of $13.02 per share, up 26% year over year.

Costs Rise

Adjusted operating income rose 27% year over year to $1.12 billion for the quarter, driven by higher revenues and cost control.

Adjusted research and development (R&D) expenses rose 35.4% from the year-ago quarter to $493 million due to expansion of the CF and non-CF pipeline.

Adjusted selling, general and administrative (SG&A) expenses increased 20% to $210 million for the reported quarter due to investments made to support the CF business expansion.

2022 Guidance

The company expects total revenues from CF products in the range of $8.4-$8.6 billion for 2022.