Vertex Pharmaceuticals Incorporated (NASDAQ: VRTX) stock rose over 0.2% on 30th October, 2020 (As of 11:17 am GMT-4; Source: Google finance) after the company posted better than expected results for the third quarter of FY 20 and revised upward its guidance for full-year 2020 product revenues. Product revenues grew 62% compared to the third quarter of 2019, mainly due tothe uptake of TRIKAFTA in the U.S. and the uptake of the medicines outside the U.S. after the completion of several significant reimbursement agreements. GAAP and non-GAAP net income increased compared to the third quarter of 2019, largely driven by strong growth in total product revenues. The company’s cash, cash equivalents and marketable securities at the end of September, 2020 were $6.2 billion, which is an increase of approximately $2.3 billion compared to $3.8 billion as of December 31, 2019 driven by strong revenue and profitability.
VRTX in the third quarter of FY 20 has reported the adjusted earnings per share of $2.64, beating the analysts’ estimates for the adjusted earnings per share of $2.39, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue of $1.54 billion in the third quarter of FY 20, beating the analysts’ estimates for revenue by 3.38%.
For full-year 2020, the company expects product revenues to be in the range of $6.0 to 6.2 billion compared to previous guidance of $5.7 to 5.9 billion. FY 20 Combined Non-GAAP R&D and SG&A expenses is expected to be in the range of $1.95 to 2.0 billion.
Meanwhile, during the third quarter, the European Commission granted marketing authorization for KAFTRIO to treat people with CF ages 12 years and older with one F508del mutation and one minimal function mutation or two F508del mutations. The company reported positive Phase 3 data for the elexacaftor/tezacaftor/ivacaftor triple combination in children with CF ages 6-11 who have either two copies of the F508del mutation or one copy of the F508del mutation and one minimal function mutation. Vertex expects to file a supplemental New Drug Application (sNDA) with the U.S. Food and Drug Administration (FDA) in the fourth quarter of 2020. VRTX is initiating a Phase 3 study for the elexacaftor/tezacaftor/ivacaftor triple combination in children with CF ages 2-5 who have either two copies of the F508del mutation or one copy of the F508del mutation and one minimal function mutation.