Vertex Pharmaceuticals Inc (NASDAQ:VRTX) stock fell 11.18% (As on May 6, 11:22:24 AM UTC-4, Source: Google Finance) after the company reported first-quarter results that fell short of analyst expectations. The company reported continued growth of its cystic fibrosis franchise, with TRIKAFTA/KAFTRIO driving performance. U.S. revenue increased 9% to $1.66 billion on strong patient demand and higher net pricing. However, revenue outside the U.S. declined 5% to $1.11 billion, partly due to intellectual property issues in Russia. Vertex highlighted progress with new product launches, including CASGEVY for sickle cell disease and beta thalassemia, as well as JOURNAVX for acute pain. The company has activated over 65 authorized treatment centers globally for CASGEVY, with approximately 90 patients having their first cell collection. Non-GAAP net income was $1.1 billion compared to $1.2 billion in the first quarter of 2024, as a result of increased operating expenses. Cash, cash equivalents and total marketable securities as of March 31, 2025, were $11.4 billion, compared to $11.2 billion as of December 31, 2024. The increase was primarily due to cash flows from operating activities, partially offset by repurchases of Vertex’s common stock pursuant to its share repurchase program.

VRTX in the first quarter of FY25 has reported the adjusted earnings per share of $4.06, missing the analysts’ estimates for the adjusted earnings per share of $4.22, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 3 percent to $2.77 billion in the first quarter of FY25, missing the analysts’ estimates for revenue by 1.72%.

Vertex raised the low end of its full-year 2025 revenue guidance to $11.85-$12 billion, compared to its previous range of $11.75-$12 billion. The new guidance still falls slightly below the consensus estimate of $11.982 billion.

Looking ahead, Vertex expects to complete enrollment in key clinical trials this year, including a Phase 3 study of its diabetes therapy zimislecel. The company also plans to initiate a pivotal study for povetacicept in primary membranous nephropathy.

Meanwhile, Vertex has secured European Commission approval for the label expansion of KAFTRIO in combination with ivacaftor for CF patients ages 2 years and older who have at least one non-class I mutation in the CFTR gene. With this approval, approximately 4,000 people in the European Union are newly eligible for a medicine that treats the underlying cause of their disease. Work to ensure access for all eligible patients is underway.