Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) stock fell 2.74% (As on February 8, 11:01:53 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the fourth quarter of FY 22. GAAP and Non-GAAP net income increased by 42% and 53%, respectively, compared to 2021, primarily due to strong product revenue growth and lower acquired in-process research and development expenses (“Acquired IPR&D”). Increased revenues were partially offset by increased investments in our mid- and late-stage clinical pipeline, the costs to support the launches of Vertex’s therapies globally, and higher income taxes. Acquired IPR&D in 2021 included a one-time $900 million payment Vertex made in connection with the amendment of the collaboration with CRISPR Therapeutics in the second quarter of 2021. Cash, cash equivalents and marketable securities as of December 31, 2022 were $10.8 billion, compared to $7.5 billion as of December 31, 2021. The increase was primarily driven by strong revenue growth and operating cash flow, partially offset by income tax payments and the acquisition of ViaCyte.

VRTX in the fourth quarter of FY 22 has reported the adjusted earnings per share of $3.76, beating the analysts’ estimates for the adjusted earnings per share of $3.53, according to Zacks Investment Research. The company had reported the adjusted revenue growth of 18 percent to $2.3 billion in the fourth quarter of FY 22, beating the analysts’ estimates for revenue of $2.23 billion. This is primarily driven by the rapid uptake of TRIKAFTA/KAFTRIO in multiple countries internationally and the continued performance of TRIKAFTA in the U.S. Net product revenue in 2022 increased 8% to $5.70 billion in the U.S. and increased 41% to $3.23 billion outside the U.S., compared to 2021.

Additionally, the company has approved a new share repurchase program, authorizing the repurchase of up to $3.0 billion of the common stock.

Vertex anticipates the number of CF patients taking the medicines will continue to grow, including through new approvals for the treatment of younger patients. The company has filed a Supplemental New Drug Application (sNDA) with the U.S. Food and Drug Administration (FDA) and a Marketing Authorization Application (MAA) with both the European Medicines Agency (EMA) and the Medicines and Healthcare products Regulatory Agency (MHRA) in the United Kingdom for the use of TRIKAFTA/KAFTRIO in children 2 to 5 years of age. The FDA granted Priority Review designation and assigned a Prescription Drug User Fee Act (PDUFA) date of April 28, 2023.