Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) stock rose 0.98% (As on August 5, 11:20:07 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the second quarter of FY 22. GAAP and Non-GAAP net income increased compared to the second quarter of 2021, primarily due to strong product revenue growth and a one-time $900 million payment in connection with the amendment of Vertex’s collaboration with CRISPR Therapeutics in the second quarter of 2021. The payment to CRISPR is included in acquired in-process research and development expenses (“Acquired IPR&D”) in the second quarter of 2021. Cash, cash equivalents and marketable securities as of June 30, 2022 were $9.3 billion, an increase of approximately $1.7 billion compared to December 31, 2021. The increase was primarily driven by strong revenue growth and operating cash flow.
VRTX in the second quarter of FY 22 has reported the adjusted earnings per share of $3.60, beating the analysts’ estimates for the adjusted earnings per share of $3.49. The company had reported the adjusted revenue growth of 22 percent to $2.2 billion in the second quarter of FY 22, beating the analysts’ estimates for revenue of $2.13 billion. This is primarily driven by the strong uptake of TRIKAFTA/KAFTRIO in multiple countries internationally and continued strong performance of TRIKAFTA in the U.S., including the June 2021 launch of TRIKAFTA in children 6-11 years old in the U.S. Net product revenues in the second quarter of 2022 increased 13% to $1.42 billion in the U.S. and increased 46% to $781 million outside the U.S., compared to the second quarter of 2021.
Vertex Pharma raises FY2022 revenue to $8.6-8.8 billion, versus the consensus of $8.58 billion. The increase primarily reflects the robust uptake of KAFTRIO/TRIKAFTA in countries outside the U.S. where Vertex has recently achieved reimbursement. Vertex is also increasing full year 2022 combined GAAP and non-GAAP R&D, Acquired IPR&D and SG&A expense guidance. The increase results from the advancement of the company’s clinical pipeline, including a number of programs that have recently entered or are initiating late-stage development, and from incremental expenses related to recent business development activity.
In addition, Vertex anticipates the number of CF patients treated with its medicines will continue to grow as a result of the uptake of TRIKAFTA in the U.S. and the launches of KAFTRIO outside the U.S., additional reimbursement agreements outside the U.S., and new approvals for the treatment of younger patients.